a.
Concept Introduction
Average Collection Period: The average collection period refers to the time period taken by the business organization to obtain
The change in the number of days sales uncollected.
b.
Concept Introduction
Average Collection Period: The average collection period refers to the time period taken by the business organization to obtain accounts receivable payments due from its clients. In order to maintain liquidity, a corporation must promptly receive payment for the goods or services it has provided.
To state: The performance of the company in the collection of receivables.

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Chapter 6 Solutions
FINANCIAL AND MANAGERIAL ACCOUNTING
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