The Average Amount of Accounts Receivable Should Be

question 42

Multiple Choice

The average amount of accounts receivable should be

• A) 1.5-2 times the charges for 1 month of services.
• B) 2-2.5 times the charges for 1 month of services.
• C) 2.5-3 times the charges for 1 month of services.
• D) 3-3.5 times the charges for 1 month of services.

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Definitions:

Money Income

The total amount of monetary earnings received by an individual or household, including wages, salaries, and other forms of income.

Satisfaction Maximization

The process of optimizing decisions or actions to achieve the highest level of satisfaction or utility.

Consumer Behavior

Consumer behavior is the study of how individuals make decisions to spend their resources on consumption-related items, including what, why, and how they buy.

Total Utility

The overall satisfaction or happiness derived from consuming a certain amount of goods or services.