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Considering that the credit policy of Steward (Pty) Ltd is 90 days, which one of the following statements is true when analysing the debtors collection

Considering that the credit policy of Steward (Pty) Ltd is 90 days, which one of the following statements is true when analysing the debtors collection period?

  • A. The debtors collection period improved from 2020 to 2021, and the company is still collecting debtors within their credit policy terms of 90 days.
  • B. The debtors collection period improved from 2020 to 2021, which is also good for the cash flow of the company.
  • C. The debtors collection period worsened from 2020 to 2021, and the company is not collecting debtors within their credit policy terms of 90 days.
  • D. The debtors collection period worsened from 2020 to 2021, but debtors are collected within their credit policy terms of 90 days.
  • E. The debtors collection period remained constant from 2020 to 2021.

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