A Collection Period Equals ________

question 11

Multiple Choice

A collection period equals ________.

• A) accounts receivable divided by net sales
• B) [(cash + accounts receivable) divided by net sales] × 365
• C) (accounts receivable divided by net sales) × 365
• D) (current assets divided by net sales) × 365

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Definitions:

World Price

The international price at which goods are traded between countries, influencing domestic prices and the balance of trade.

Comparative Advantage

The ability of a country or entity to produce a specific good or service at a lower opportunity cost than others, leading to specialization in trade.

Tires

Rubber-based components that fit around the rims of wheels to provide vehicles with traction, support, and a cushion from the impact of the road.

Microchips

Small semiconductor devices containing electrical circuits that can perform calculations or store data.