ABC Co Has an Average Collection Period of 90 Days

question 55

Multiple Choice

ABC Co. has an average collection period of 90 days. Total credit sales for the year were $6,000,000. What is the balance in accounts receivable at year-end?

• A)$150,000
• B)$2,250,000
• C)$1,500,000
• D)$40,000

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Definitions:

Hindsight Bias

The inclination to feel, after something has happened, that one would have foreseen or anticipated the result.

Humility

Humility is the quality of having a modest or low view of one's importance, often allowing individuals to be open, teachable, and appreciative of others.

Operational Definitions

Specific descriptions of concepts involving observable conditions and the procedures used to measure them, making research replicable.

Religious Beliefs

The faith-based principles and convictions held by individuals or groups, typically involving belief in a higher power or spiritual doctrines.