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:

Oligopoly

A market structure dominated by a small number of large firms, leading to limited competition and often high prices for consumers.

Perfect Competition

A theoretical market structure characterized by a complete absence of rivalry among the individual firms.

Monopoly

An economic setup where there is only one provider offering a distinctive item for sale.

Joint Profits

Profits that are shared among two or more businesses, typically resulting from a partnership or joint venture.