Potaw Company Reported the Following Data at the End of 2019

question 108

Multiple Choice

Potaw Company reported the following data at the end of 2019:
- The average number of days to collect receivables during 2019 is closest to: (Assume 365 days in a year. )

• A)16.2.
• B)14.3.
• C)36.5.
• D)21.9.

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Definitions:

Defined Benefit

A type of pension plan in which an employer promises a specified monthly benefit upon retirement, which is predetermined by a formula based on the employee's earnings history, tenure of service, and age.

Employee Retirement Income Security Act

A federal law that sets standards for pension and health plans to provide protection for individuals in these plans.

Federal Racketeering Law

Laws aimed at combating organized crime that allow for the prosecution of individuals involved in ongoing criminal organizations, most notably under the Racketeer Influenced and Corrupt Organizations Act (RICO).

Contributory Plan

A type of insurance plan or pension scheme where both the employer and the employee contribute towards the cost of the benefits.