Question

Which of the following is the most appropriate turn-around time for payment of an account?

a) 30 days
b) 60 days
c) 90 days
d) 120 days

Answer 1

The most appropriate turn-around time for payment of an account is typically 30 days.

Step-by-step explanation:

The most appropriate turn-around time for payment of an account depends on various factors, such as industry standards, business relationships, and cash flow. However, in general, a common turn-around time for payment is 30 days. This allows the supplier enough time to deliver the goods or services and the customer enough time to review and process the invoice.

For example, many businesses offer Net 30 terms, which means the payment is due 30 days from the invoice date. This timeframe provides a balance between prompt payment and allowing the customer sufficient time to process the payment.

While longer turn-around times like 60, 90, or 120 days may be negotiated in certain industries or for large contracts, they are less common and may not be suitable for every business or situation.