A Company with Net Sales of $800,000, a Beginning Balance

question 63

Multiple Choice

A company with net sales of $800,000, a beginning balance of net receivables of $70,000, and an ending balance of net receivables of $90,000 has a collection period of rounded) :

• A)36 days.
• B)32 days.
• C)41 days.
• D)110 days.

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Definitions:

Direct Transfer

The movement of assets or funds from one type of account or investment vehicle directly to another without taking possession, often seen in IRA or 401(k) rollovers.

Share Certificates

Physical documents issued by a company that certify the holder is the owner of a specified number of shares in that company.

Sole Proprietorship

A business structure in which a single individual owns the company and is responsible for its debts and liabilities.

Double Taxation

A taxation principle referring to income taxes paid twice on the same source of earned income.