A firm has an average collection period of 10 days. The industry average ACP is 25 days.

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A firm has an average collection period of 10 days. The industry average ACP is 25 days. Is this a good or poor sign about the management of the firm’s accounts receivable?

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Finance Applications and Theory

ISBN: 978-0077861681

3rd edition

Authors: Marcia Cornett, Troy Adair

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Question Posted: Sep 23, 2014 10:22 AM

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A firm has an average collection period of 10 days. The industry average ACP is 25 days.

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Finance Applications and Theory

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