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Provides an assessment of average time that it takes to collect debtors |
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Answer» Average collection period is a measure of how many days it takes a firm, on average, to COLLECTS its receivables. It indicates the efficiency of the collection process and the lower it is the SHORTER the CASH cycle of the business is, which has a positive impact on its profitability. HOPE THIS IS HELPFUL PLEASE MARK IN BRILLIANT |
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