Amanda's Interior Design Has Sales of $462,000,costs of Goods Sold

question 85

Multiple Choice

Amanda's Interior Design has sales of $462,000,costs of goods sold of $308,000 and average accounts receivable of $48,900. How long does it take its credit customers to pay for their purchases?

• A) 36.09 days
• B) 38.63 days
• C) 41.23 days
• D) 44.20 days
• E) 57.95 days

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Definitions:

Safeguards

Measures or controls put in place to protect against unauthorized access, damage, or theft.

Assets

Resources owned by a company that have economic value and can be used to meet liabilities.

Internal Auditors

Professionals who conduct audits within an organization to review and evaluate the adequacy of internal controls and compliance with policies and regulations.

Evaluate

To Evaluate means to systematically assess something by considering its merits, qualities, or values, usually in a detailed and analytical manner.