Hayes Company Had an Average Age of Accounts Receivable of 25

question 48

Multiple Choice

Hayes Company had an average age of accounts receivable of 25 days and net credit sales of $31,000. Assume a 365 day year. What was the amount of the average net receivables?

• A) $5,760
• B) $1,152
• C) $2,123
• D) $4,000

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Definitions:

Producer Surplus

The difference between the amount a producer is willing to accept for a good compared to what they actually receive, generally representing the benefit to producers from participating in the market.

Tariff Revenue

Revenue generated by a government from imposing taxes on imported goods.

Consumer Surplus

The variance between what consumers are prepared and capable of paying for a product or service and the actual amount they pay.

Deadweight Loss

The decrease in economic effectiveness that happens when there's a failure to achieve or an inability to achieve equilibrium for a particular good or service.