Accounting for IGCSE & O level - Advanced Principles (Section 4 - No. 1)

What does a longer trade receivables collection period suggest about a business?

It is collecting cash from customers more quickly.

It has strong cash reserves.

It has a problem with credit control.

It is experiencing high sales growth.

A longer collection period suggests that a business is taking longer to collect its debts, possibly indicating problems with credit control.