Your fiRm Deals Strictly with Three Customers

question 242

Multiple Choice

Your firm deals strictly with three customers. The average amount that each customer pays per month along with the collection delay associated with each payment is shown below. Given this
Information, what is the amount of the average daily receipts? Assume that every month has 30
Days.

• A) $4,000
• B) $6,667
• C) $7,500
• D) $11,500
• E) $13,333

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Definitions:

Firms

Businesses or companies engaged in commercial, industrial, or professional activities.

Individual Assets

Assets that are identifiable and separate, such as machinery, buildings, or patents, and can be owned and controlled by an entity.

Partnership Liquidates

When a partnership liquidates, it involves the process of dissolving the business, settling debts, distributing remaining assets among partners, and ceasing operations.

Jointly Owned

Owned by two or more parties who share control and rights over the property or asset.