Based on the Following Data for the Current Year, What

question 114

Multiple Choice

Based on the following data for the current year, what is the number of days' sales in receivables? $$\begin{array} { l r } \text { Sales on account during year } & \$ 584,000 \\\text { Cost of goods sold during year } & 300,000 \\\text { Accounts receivable, beginning of year } & 45,000 \\\text { Accounts receivable, end of year } & 35,000 \\\text { Inventory, beginning of year } & 90,000 \\\text { Inventory, end of year } & 110,000\end{array}$$

• A) 7.3
• B) 2.5
• C) 14.6
• D) 25

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Definitions:

Negotiated

A process where two or more parties discuss terms and conditions to reach a mutual agreement.

Specific Payee

An individual or entity designated to receive a particular payment or benefit from a contractual agreement.

Blank Indorsement

An endorsement on a financial instrument, such as a check, that specifies no particular endorsee and can be transferred by mere delivery.

Bearer Paper

A negotiable instrument that is payable to whoever holds or presents it for payment.