A Company's Number of Days to Collect Is Higher Than

Multiple Choice

A company's number of days to collect is higher than the length of credit period.Analysts might conclude:

A) customers are dissatisfied with the product or service they bought.
B) the company is effectively managing its receivables.
C) the company has begun estimating the amount of uncollectibles using percentage of net sales rather than aging the receivables.
D) the company's payment terms have been tightened and customers are paying within the payment period granted.