Many companies tolerate customers who take longer than the typical 30 days to pay their bills. Therefore , it is not alarming, and is even acceptable, for a company to have a 60 day ACP.

Question

Quizplus · Accepted Answer

While some companies may tolerate longer payment periods, a 60-day average collection period (ACP) can indicate potential cash flow issues and inefficiencies in collecting receivables, which may not be acceptable for all businesses.

Many Companies Tolerate Customers Who Take Longer Than the Typical