Your Firm Has an Average Collection Period of 36

question 25

Multiple Choice

Your firm has an average collection period of 36.5 days. Sales revenues are $30,000. What is your firm's average investment in accounts receivables?

• A)$3,650
• B)$3,000
• C)$1,000
• D)$822

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Definitions:

Linear Relationship

A relationship between two variables where the change in one variable is directly proportional to the change in another variable.

Chocolate Consumed

The amount of chocolate intake by an individual or group over a specified period.

Automobile Accidents

Events involving motor vehicles that result in damage, injury, or fatalities.

Correlation

A mathematical gauge that captures the extent of simultaneous variation between two variables, revealing the power and trajectory of their interrelation.