If a Small Company Has Average Daily Sales of $5,000

question 18

Multiple Choice

If a small company has average daily sales of $5,000 and accounts receivable of $150,000, what is the average days of accounts receivable?

• A)30 days
• B)3.3 days
• C)$5,000/month
• D)33.3 days

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Definitions:

Reagan Administration

The period of U.S. presidency under Ronald Reagan, from 1981 to 1989, known for its conservative policies, economic reforms, and efforts to end the Cold War.

Tax Cuts

Reductions in the amount of taxes imposed by a government on individuals or entities, typically aimed at stimulating economic growth or achieving other policy objectives.

Aggregate Demand

Represents the total demand for all goods and services in an economy at various price levels, within a specific time frame.

Stagflation

A contraction, or stagnation, of a nation’s output accompanied by inflation in the price level.