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:

Fisher v. University of Texas

A significant court case related to affirmative action in higher education admissions in the United States, focusing on the University of Texas at Austin's use of race as a factor in its admissions process.

Affirmative Action

A policy or a set of measures aimed at increasing opportunities for historically underrepresented groups in areas such as education and employment.

Admissions Process

The procedure through which institutions, particularly educational, evaluate and decide on the acceptance of applicants based on certain criteria.

Audit Studies

Research methodology that uses matched pairs of individuals (such as in race or gender) to apply for real job opportunities or housing to investigate discrimination.