A Firm Ended the Year with an Average Collection Period

question 98

Multiple Choice

A firm ended the year with an average collection period of 20 days. The firm's credit sales were $50 million. What is the firm's year-end balance in accounts receivable?

• A) $1.46 million
• B) $2.50 million
• C) $2.74 million
• D) $4.00 million

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Definitions:

Rectus Femoris

One of the four quadriceps muscles, extending the knee and assisting in hip flexion.

Sartorius

The longest muscle in the human body, running diagonally across the thigh, involved in flexing, abducting, and rotating the hip.

Vastus Lateralis

A muscle in the thigh that is part of the quadriceps, it extends the leg at the knee.

Gluteus Maximus

The largest and most superficial of the three gluteal muscles, responsible for movement of the hip and thigh.