A Firm Has an ACP of 38 Days and Its

question 51

Multiple Choice

A firm has an ACP of 38 days and its annual sales are $5.3 million. What is its account receivable balance?

• A) $551,781
• B) $619,304
• C) $692,098
• D) $759,021

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Definitions:

Posterior Probabilities

Posterior probabilities are the revised probabilities of events occurring after taking into consideration new evidence or information.

P(A ∪ B)

The probability that at least one of two events, A or B, occurs, including the possibility that both events occur simultaneously.

P(A | B)

Conditional Probability of A given B, representing the probability of event A occurring given that event B is known to occur.

Independent Events

Two or more events where the occurrence or outcome of one event does not affect the occurrence or outcome of the other event(s), a fundamental concept in probability.