If a Firm Has a Receivables Turnover of 12, on Average

question 28

Multiple Choice

If a firm has a receivables turnover of 12, on average, which of the following would be the firm's average collection period?

• A) 12 months
• B) 1 month
• C) 8.33 months
• D) 11 months

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Definitions:

Imitate

To copy or mimic the actions, appearance, or speech of someone else.

Theory of Mind

The ability to attribute mental states—beliefs, intents, desires, emotions, knowledge—to oneself and to others, and to understand that others have beliefs, desires, and intentions that are different from one's own.

Mental State

The condition of one's mind or psychology, encompassing emotions, thoughts, and mood at a given time.

Observational Learning

A learning process through watching others, retaining the observed behavior, and later replicating it without having been directly taught or reinforced for it.