Which of the following is incorrect, regarding accounts receivable management. The higher the collection period, the quicker the funds cycle back to the business, and can be invested, to minimize opportunity cost. The collection period measures the average number of days an account receivable is outstanding. When reducing accounts receivable, it is good to be mindful of the customer's ability to pay sooner and the competitor's credit policies. Accounts receivable 'level' refers to accounts receivable investment, which is the usiness' accounts receivable balance