Questions and Answers
What does the average collection period indicate?
Why is it important for a business to collect debts on time?
What is the formula for calculating the average collection period?
What does the average collection period ratio measure?
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A company with a lower average collection period ratio indicates what?
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What are the implications of a high average collection period ratio?
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What does a decreasing average collection period ratio indicate?
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Why is the average collection period ratio important for businesses?
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What is the interpretation of an average collection period of 72.67 days?
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What is the average collection period ratio for Zizz Company if the Accounts receivable is RM40,000, Net credit sales is RM185,000 and the number of days in a year is 365 days?
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