Tan Co Had Total Operating Revenues of $720 Over the Past

question 27

Multiple Choice

Tan Co. had total operating revenues of $720 over the past year. During that time, average receivables were $90. What was the average collection period (ACP) given a 365-day year?

• A) 8.00 days.
• B) 4.56 days.
• C) 40.97 days.
• D) 45.63 days.

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Definitions:

Sequential Method

A method of executing tasks or operations one after the other in a specified sequence.

Support Departments

Internal operational units within an organization that provide essential services or support to the primary revenue-generating functions.

Janitorial Department Costs

Expenses associated with maintaining the cleanliness and functionality of a company's physical premises, including salaries of custodial staff and cleaning supplies.

Sequential Method

A process of handling tasks one after another in a specific order.