A Firm Has an ACP of 38 Days and Its

question 51

Multiple Choice

A firm has an ACP of 38 days and its annual sales are $5.3 million. What is its account receivable balance?

• A) $551,781
• B) $619,304
• C) $692,098
• D) $759,021

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Definitions:

Monopsony Power

Refers to a market situation where there is only one buyer for a particular product or service, giving that buyer significant control over prices and terms.

Outside Suppliers

External entities or companies that provide goods or services to another company, often playing a critical role in supply chains.

Equilibrium Wage

The salary level at which the supply and demand for workers are equal.

Bilateral Monopoly

A market structure involving a single buyer (monopsony) and a single seller (monopoly), negotiating over the price and quantity of a specific good or service.