Calculate the Accounts Receivable Period for a Firm with Annual

question 24

Multiple Choice

Calculate the accounts receivable period for a firm with annual credit sales of $10 million and average accounts receivable of $2 million.

• A)18.25 days
• B)20.00 days
• C)51.00 days
• D)73.00 days

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Definitions:

Retailing

Retailing refers to the selling of goods and services directly to consumers for personal, non-business use.

Downward-Sloping

Refers to a line or curve on a graph that moves from the upper left to the lower right, indicating a negative relationship between two variables.

Demand Curve

A chart that displays the connection between a product's price and the amount consumers are willing to purchase.

Marginal Revenue

The additional income gained from selling one more unit of a product or service.