A Firm Has Annual Credit Sales of $5,000,000 and an Average

question 56

Multiple Choice

A firm has annual credit sales of $5,000,000 and an average collection period of 52 days. What is their average debtors balance, assuming a 365-day year?

• A) $712,345
• B) $486,111
• C) $142,857
• D) none of the above

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Definitions:

Complexity

The state or quality of being intricate or complicated, often referring to systems, processes, or products.

Technical Sophistication

The level of advanced technological features, capabilities, or complexity embedded within a product or system.

Behaviors

Observable actions or responses of individuals or groups in response to external or internal stimuli, often studied in psychology to understand and predict human actions.

Volunteers

Individuals who offer themselves for a service or undertaking willingly and without pay.