ABC Corp. extends credit terms of 45 days to its customers. Its credit collection would likely be considered poor if its average collection period was ________.
A) 30 days
B) 36 days
C) 44 days
D) 57 days

Question

Quizplus · Accepted Answer

If ABC Corp.'s average collection period exceeds the credit terms of 45 days, it indicates that the company is having difficulty collecting its accounts receivable on time. Therefore, an average collection period of 57 days would be considered poor credit collection.

ABC Corp Extends Credit Terms of 45 Days to Its Customers