Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) As a general rule, management would want to reduce the firm's average collection period.
B) As a general rule, management would want to reduce the firm's accounts receivable turnover ratio.
C) As a general rule, management would want to increase the firm's average collection period.
D) As a general rule, a firm is not financially affected by the amount of time required to collect its accounts receivable.