Leak Company Sells Only on Credit

question 14

Multiple Choice

Leak Company sells only on credit.It reported the following information for 2012: Customer amounts on account are collected 45% in the month of sale and 55% in the following month.How much is the November 30, 2009 budgeted Accounts Receivable?

• A)$467,500
• B)$382,500
• C)$827,500
• D)$528,000

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Definitions:

Parameter

A quantity that influences the output or behavior of a mathematical function or statistical model, often fixed during the analysis.

Exponential Random Variable

A type of continuous random variable that is used to model time until an event occurs, with a constant hazard rate.

Exponential Distribution

A continuous probability distribution that describes the times between events in a Poisson process, representing a constant hazard rate.

Density Function

A mathematical function that describes the distribution of a continuous random variable, indicating the probability of the variable falling within a particular range.