For a Firm, the Receivables Turnover Is 33

question 3

Multiple Choice

For a firm, the receivables turnover is 33.5, the closing inventory is $120,000, and the accounts payable balance is $52,000. Assuming there are 360 days in a year, the receivables collection period is:

• A) 19.23 days.
• B) 13.77 days.
• C) 14.56 days.
• D) 12.25 days.
• E) 10.75 days.

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Definitions:

Lottery

A form of gambling involving the drawing of numbers for a prize, often used as a method to allocate scarce resources such as green cards or in decision theory as a risk model.

Probability

A measure of the likelihood that an event will occur, quantified as a number between 0 and 1.

Utility

A concept in economics that measures the satisfaction, happiness, or benefit that results from the consumption of goods and services.

Expected Utility Function

A mathematical representation in economic theory that models preferences over risky choices or uncertain outcomes.