Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
What type of company would have a low receivables-collection period?
Expert Solution
Step 1
Step 1
The low collection time is usually more attractive than the high. Low collection time indicates that the organization is collecting payments very quickly. 1 However, the opposite is true, as it may imply that the company's credit terms are too strict.
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