Calculate the Average Collection Period for Dotte Inc

question 67

Multiple Choice

Calculate the average collection period for Dotte Inc.if its accounts receivables were $500 and $600 at the end of each of the last two years,and its revenue over the last year was $3,000.

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

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Definitions:

Less Developed Countries

Nations with a lower living standard, undeveloped industrial base, and low Human Development Index relative to other countries.

Per Capita Income

The average income earned per person in a given area or country, calculated by dividing the total income of the area by its population.

Dual Economy

An economic model that suggests the coexistence of two separate sectors within one economy, traditionally a modern industrial sector alongside a traditional agricultural sector.

Stock of Capital

Represents the total value of all physical assets (machinery, buildings, equipment) that are used in the production of goods and services in an economy.