A company monitors the performance of its credit control department by calculating the receivables collection period
as closing trade receivables/annual credit sales x 365.

Which of the following factors could cause the receivables collection period calculated as above to be abnormally
high compared to the monthly average level during the year?

1   The company’s trade is seasonal
2   A downturn in the company’s credit sales in the last few months of its accounting period.
3   A large credit sale in the final month of its accounting period

A   1 and 2
B   1 and 3
C   2 and 3
D   All three factors

B

  不懂