A retailer seeking to decrease its collection period should ________.
A) decrease the frequency of mailing credit statements
B) reduce its debt through the sale of common stock
C) encourage slow-paying customers to use bank credit cards
D) sell assets to convert them to cash

Question

Quizplus · Accepted Answer

Encouraging slow-paying customers to use bank credit cards can help decrease the collection period as it ensures that the retailer receives payment faster from the credit card company rather than waiting for payment from the customer. Decreasing the frequency of mailing credit statements or selling assets may not necessarily have an immediate impact on the collection period. While reducing debt through the sale of common stock may help the retailer's financial position, it may not directly impact the collection period.

A Retailer Seeking to Decrease Its Collection Period Should ________