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an average collection period in excess of the industry average may indicate a. credit terms are liberal b....

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Finance

an average collection period in excess of the industry averagemay indicate

a. credit terms are liberal

b. current assets are too small

c. bad debt write-offs may occur

d. collection policies are lax

e. balance sheet value of accounts receivable is overstated

Answer & Explanation Solved by verified expert
3.8 Ratings (511 Votes)
The Correct Answer is acredit terms are liberal When a company makes credit sale then it allows the buyer of goods to make payment after a certain credit period The customer or buyer makes payment within    See Answer
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Transcribed Image Text

an average collection period in excess of the industry averagemay indicatea. credit terms are liberalb. current assets are too smallc. bad debt write-offs may occurd. collection policies are laxe. balance sheet value of accounts receivable is overstated

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