If you extend credit, it is critical to minimize this number to keep cash flowing.
A) receivable turnover ratio
B) inventory turnover ratio
C) collection-period ratio
D) debt-to-equity ratio

Question

Quizplus · Accepted Answer

The collection-period ratio is critical to minimize when extending credit to keep cash flowing, as it measures the average number of days it takes a company to collect payments after a sale has been made, directly affecting cash flow.

If You Extend Credit, It Is Critical to Minimize This