Your Firm Had Net Sales of $80,000 This Past Year

question 18

Multiple Choice

Your firm had net sales of $80,000 this past year and receivables of $20,000; and a cost of goods sold of $522,000. What were the days sales outstanding?

• A) 91 days
• B) 48 days
• C) 36 days
• D) 5 days
• E) 4 days

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Definitions:

Tax-exempt Saving

An investment account or product that offers tax benefits, such as no taxation on the interest or profits earned.

529 Plan

A tax-advantaged savings plan designed to encourage saving for future education costs, including tuition, fees, and room and board.

Annual Return

The percentage change in an investment's value over a one-year period, taking into account both capital gains and dividend or interest earnings.

Roth IRA

A type of individual retirement account where contributions are made with after-tax dollars, but withdrawals during retirement are tax-free.