To shorten the collection period, a company may:

Name: To shorten the collection period, a company may:
Brand: Quizplus
Rating: 4.8 (65 reviews)

Question

Quizplus · Accepted Answer

To shorten the collection period, a company should decrease its average receivables. This can be achieved by improving the creditworthiness of customers, revising credit terms, and collecting outstanding receivables on a timely basis. Increasing average receivables, decreasing discount offered or decreasing total sales would not help in shortening the collection period.

To Shorten the Collection Period, a Company May