Given an Accounts Receivable Turnover of 10 and Annual Credit

question 110

Multiple Choice

Given an accounts receivable turnover of 10 and annual credit sales of $900,000,the average collection period is

• A) 18.25 days.
• B) 36.50 days.
• C) 90 days.
• D) 40.56 days.

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Definitions:

Demand Curve

The demand curve is a graphical representation of the relationship between the price of a good and the quantity demanded, showing how the quantity demanded changes in response to changes in price.

Initial Purchase

The first acquisition of a good or service by a consumer, often marking the beginning of the consumption experience.

Income Elasticity of Demand

An indicator of the variation in demand for a product based on changes in consumer income.

Used Clothing

Clothing that has been previously worn and is often sold at lower prices than new clothing; it's part of the second-hand market.