how-might-shortening-credit-terms-from-60-days-to-30-days-impact-a-companys-aver

Question

How might shortening credit terms from 60 days to 30 days impact a company's average collection period?

Accepted Answer

It would likely decrease the average collection period, improving cash flow.

Answer

It would reduce the company's profitability.

Answer

It would increase the average collection period, potentially affecting cash flow.

Answer

It would have no impact on the average collection period.