Calculate the Average Collection Period for Dots Inc

question 72

Multiple Choice

Calculate the average collection period for Dots Inc.if its accounts receivables were $550 at the beginning of a year in which the firm generated $3,000 of sales?

• A) 60 days
• B) 61 days
• C) 67 days
• D) 73 days

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Definitions:

Excess Burden

The cost to society created by market inefficiency, typically due to taxes or government policies that distort resource allocation.

Progressive

Relating to progressive policies or movements that advocate for change, reform, and innovation, often in the social, political, or economic sphere.

Elastic Demand

refers to a situation where the quantity demanded of a good or service is highly responsive to changes in its price.

Excess Burden

The economic loss to society due to market inefficiencies, often associated with taxes or other government policies that distort market behavior beyond the revenue raised or spending undertaken.