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What does an increasing collection period for accounts receivable suggest about a firm's credit policy?

What does an increasing collection period for accounts receivable suggest about a firm's credit policy?

A.The firm is probably losing qualified customers.

B.Nothing, because the collection period has no relationship to a firm's credit policy.

C.The credit policy may be too lenient.

D.The credit policy is too restrictive.

Top Answer

C. The credit... View the full answer

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Lenientcredit policy It means the company extends favorable terms to the buyers who make purchases on accounts or through... View the full answer

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