Which one of the following statements is true if a company's collection period for accounts receivable is unacceptably long? a.The company may need to borrow to acquire operating cash. b.The company should expand operations with its excess cash. c.Cash flows from operations may be higher than expected for the company's sales. d.The company may offer trade discounts to lengthen the collection period.
Which one of the following statements is true if a company's collection period for accounts receivable is unacceptably long? a.The company may need to borrow to acquire operating cash. b.The company should expand operations with its excess cash. c.Cash flows from operations may be higher than expected for the company's sales. d.The company may offer trade discounts to lengthen the collection period.
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 11MC: Which of the following best represents a positive product of a lower number of days sales in...
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Which one of the following statements is true if a company's collection period for accounts receivable is unacceptably long?
a.The company may need to borrow to acquire operating cash.
b.The company should expand operations with its excess cash.
c.Cash flows from operations may be higher than expected for the company's sales.
d.The company may offer trade discounts to lengthen the collection period.
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