The average collection period is the number of days that a business extends credit to its customers.

Name: The average collection period is the number of days that a business extends credit to its customers.
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The average collection period measures the time it takes for a business to collect payments from its customers after extending credit terms. It is usually expressed in days, and a shorter average collection period is generally considered better for a business's cash flow and liquidity.

The Average Collection Period Is the Number of Days That