Smith and Johnson Have Expected Sales of $427,$489,$626,and $738 for the Months

question 15

Multiple Choice

Smith and Johnson have expected sales of $427,$489,$626,and $738 for the months of January through April,respectively.The accounts receivable period is 15 days.How much did the firm collect in the month of April? Assume a 360-day year.

• A)$626
• B)$558
• C)$738
• D)$313
• E)$682

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Definitions:

CCA

Canadian Controlled Private Corporation, regarding taxation in Canada, or can refer to Capital Cost Allowance, which is a tax deduction in Canada that represents depreciation for tax purposes.

Net Advantage

The total benefit gained from a financial decision or investment, taking into account all relevant costs and revenues.

Leased

A contractual arrangement where an owner of an asset allows another party to use that asset in return for payment over a specified period.

CCA Class

A classification system used in Canadian tax law for the depreciation of property, plant, and equipment for tax purposes.