A Firm Has Accounts Receivable of $150,000

question 59

Multiple Choice

A firm has accounts receivable of $150,000.During the year,total sales are $500,000,of which $300,000 are cash sales.What is the average collection period?

• A) 109.5 days
• B) 182.5 days
• C) 273.8 days
• D) 486.7 days
• E) None of the above

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Definitions:

Disclose Information

The act of making information known or revealed, often in a formal or official capacity.

Subjective Test

A method of assessment where outcomes are influenced by the perspectives, interpretations, or judgments of the evaluator.

Agency Relationship

A relationship in which one party (the agent) agrees to act for or on behalf of another party (the principal), typically in business transactions.

Operation Of Law

The automatic application of law to certain actions and circumstances without the need for an agreement or court action.