If the collection period lengthens compared to historic figures and industry averages, what might the reason be?

Question

Quizplus · Accepted Answer

A longer collection period could indicate a deterioration in the collectability of receivables or a shift in sales to customers who take longer to pay, both of which are covered in options A and B. Option C, a decrease in sales, does not directly affect the length of the collection period.

If the Collection Period Lengthens Compared to Historic Figures and Industry