If a Firm Has Total Accounts Receivable of $6,000,000 and Its

question 95

Multiple Choice

If a firm has total accounts receivable of $6,000,000 and its average daily credit sales are $45,000 what is its collection period?

• A) 120 days
• B) 133 days
• C) 45 days
• D) 156 days

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Definitions:

Contractual Duties

Obligations imposed by a contract, requiring parties to act (or refrain from acting) in certain ways in fulfillment of the agreement's terms.

Executory Contract

A contract where both parties have outstanding obligations that have not yet been performed.

Bankruptcy Court

A specialized federal court where cases regarding bankruptcy filings and related legal matters are heard.

Implied-In-Law Condition

A stipulation inferred by a court that is not explicitly stated in a contract but is necessary to give effect to the parties' intentions.