A Firm Ended the Year with an Average Collection Period

question 118

Multiple Choice

A firm ended the year with an average collection period of 50 days. The firm's credit sales were $11 million. What is the firm's year-end balance in accounts receivable?

• A) $1.27 million
• B) $0.85 million
• C) $1.51 million
• D) $2.05 million

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Definitions:

Assimilation

The cognitive process in which new information is integrated into existing schemas, beliefs, or understanding.

Suck Reflexively

An innate reflex in infants enabling them to suckle for feeding.

Mental Structure

The organization and framework of the mind that influences how individuals think, perceive, and understand the world.

Accommodation

In cognitive theory, the process of adjusting existing cognitive schemas to incorporate new information.