A Firm Has $50 Million and $60 Million Credit Sales

question 18

Multiple Choice

A firm has $50 million and $60 million credit sales during the first two quarters of the year.Eighty percent of the receivables are collected in the same quarter and the balance in the next quarter.What will be the total collection for the firm in the second quarter?

• A) $55 million
• B) $58 million
• C) $88 million
• D) $98 million

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Definitions:

Group Polarisation

The tendency for a group to make decisions that are more extreme than the initial inclination of its members.

Intergroup Attribution

Process of assigning the cause of one’s own or others’ behaviour to group membership.

Ultimate Attribution Error

A cognitive bias where people attribute the positive behaviors of their own group to stable, internal characteristics and negative behaviors of out-groups to their inherent characteristics.

Ingroup Behaviour

Actions and norms exhibited by members within their own group, often characterized by solidarity and loyalty.