The ________ is useful in evaluating credit and collection policies.
A) average payment period
B) current ratio
C) average collection period
D) current asset turnover

Question

Quizplus · Accepted Answer

The average collection period measures the average number of days it takes for a company to collect payment from its customers. This can be useful in evaluating the effectiveness of a company's credit and collection policies, as a longer average collection period may indicate that the company is having difficulty collecting payments from customers.

The ________ Is Useful in Evaluating Credit and Collection Policies