A Firm Has Average Accounts Receivable of $2 Million,and,on Average,takes

question 38

Multiple Choice

A firm has average accounts receivable of $2 million,and,on average,takes 39 days to collect on its sales.What is the total amount of the firm's sales?

• A)$2 million
• B)$4.7 million
• C)$18.7 million
• D)$78 million
• E)$19.5 million

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Definitions:

Quarterly Premiums

Insurance payments made every three months to maintain coverage, often used in health, life, and property insurance policies.

Endowment Policy

A life insurance contract designed to pay a lump sum after a specified term (on its 'maturity') or upon death, often used as savings or investment vehicle.

Maximum Loan

The highest amount of money that can be borrowed by an individual or organization from a lender under specific terms.

Deductible

An amount that must be paid out of pocket before an insurance provider will cover any expenses.