Kantorovich Company Normally Takes 30 Days to Pay for Its

question 17

Multiple Choice

Kantorovich Company normally takes 30 days to pay for its average daily credit purchases of $2,000. It has average daily sales of $3,000, and collects accounts in 25 days. What is its net credit position?

• A) $15,000
• B) $1,000
• C) ($1,000)
• D) ($15,000)

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Definitions:

Business Management

Business management encompasses the planning, organizing, directing, and controlling of a company's resources and operations to achieve its objectives.

Obtaining Financing

entails securing funds or capital necessary to start, operate, or expand a business, typically through loans, investments, or grants.

Marketplace

A physical or virtual venue where goods and services are exchanged between buyers and sellers.

Existing Suppliers

Companies or individuals that currently provide goods or services to another entity, often under established contracts.