If a firm's customers on average take two weeks to pay their bills,then about half of each month's bills will not be paid until the following month.

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Quizplus · Accepted Answer

This is true because if customers take two weeks on average to pay their bills, then half of the bills for the month will not be paid until the following month. For example, if the bills are issued on the first of the month and the customers take two weeks to pay, then the bills issued on the first will not be paid until around the 15th of the month. Therefore, half of the bills for the month will not be paid until the following month.

If a Firm's Customers on Average Take Two Weeks to Pay