A retailer typically has half of its sales on credit; the balance of sales are by cash, check, or debit card. Credit sales are payable in full in 30 days. The retailer's collection period is 25 days. The retailer has _____.

A retailer typically has half of its sales on credit; the balance of sales are by cash, check, or debit card. Credit sales are payable in full in 30 days. The retailer's collection period is 25 days. The retailer has _____.


a. slow-turning accounts receivable

b. fast-turning accounts receivable

c. average-turning accounts receivable

d. high financial leverage


Answer: A


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Marketing Chapter 12

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