The Aging Schedule of a Firm Shows That 40% of the Receivables

question 61

Multiple Choice

The aging schedule of a firm shows that 40% of the receivables are collected in 18 days and the remaining 60% of the receivables are collected in 50 days. The days sales outstanding (DSO) of the firm is _____.

• A) 12.32 days
• B) 12.78 days
• C) 20.34 days
• D) 40.56 days
• E) 37.20 days

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Definitions:

Probability

A means of expressing an event's probability on a scale that ranges from 0 to 1.

At Least

A term used to signify a minimum amount or the smallest quantity that is acceptable or required.

Queen

A female monarch who reigns over a kingdom or territory, often as part of a constitutional monarchy where her powers are ceremonial or limited by law.

Probability

A measure of the likelihood of a specific outcome or event occurring, expressed as a number between 0 and 1.