How High Can Accounts Receivable Be Allowed to Grow Before

question 107

Multiple Choice

How high can accounts receivable be allowed to grow before the firm's receivables period exceeds 50 days if annual sales equal $5 million and the cash conversion cycle equals 75 days?

• A) $342,466
• B) $684,932
• C) $1,027,397
• D) $1,712,329

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Definitions:

Type A Personality

A temperament characterized by high levels of ambition, aggression, competitiveness, drive, impatience, need for control, focus on time management, and stress.

External Locus

An individual's belief that external forces, beyond their personal control, have a significant impact on their life events and outcomes.

Experience Stress

The emotional or physical strain experienced as a response to challenging or demanding situations.

Cope Effectively

The ability to manage stressful situations or challenges in a way that minimizes negative outcomes and maximizes positive, healthy results.