ABC Co Has an Average Collection Period of 90 Days for for Its

question 90

Multiple Choice

ABC Co. has an average collection period of 90 days for its accounts receivable. If total credit sales for the year were $6,000,000, what is the balance in accounts receivable at year-end? Assume a 360-day calendar year.

• A) $150,000
• B) $2,250,000
• C) $1,500,000
• D) $40,000

Understand the basic principles of resource optimization and how it impacts hiring and production decisions.

Relate productivity of labor to complementary factors and motivation.

Differentiate between output and substitution effects in employment due to technological changes.

Comprehend the relationship between marginal revenue product (MRP) and the decision to employ additional resources.

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Definitions:

Early-Retirement Waivers

Early-retirement waivers are agreements that allow employees to retire before the traditional retirement age, often with specific benefits or conditions.

Age Discrimination in Employment Act

A U.S. federal law designed to protect workers 40 years of age and older from discrimination based on age.

Unemployment Insurance Program

A government program that provides temporary financial assistance to individuals who have lost their jobs through no fault of their own.

Social Security Act

A law enacted in 1935 in the United States to provide for the general welfare by establishing a system of federal old-age benefits, and by enabling the states to make more adequate provision for aged persons, blind persons, dependent and crippled children, maternal and child welfare, public health, and the administration of their unemployment compensation laws.