Grapp Company Had $130,000 in Sales on Account Last Year

question 188

Multiple Choice

Grapp Company had $130,000 in sales on account last year.The beginning accounts receivable balance was $18,000,and the ending accounts receivable balance was $16,000.The company's average collection period (age of receivables) was closest to which of the following?

• A) 44.92 days.
• B) 47.73 days.
• C) 50.54 days.
• D) 95.46 days.

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Definitions:

Policymakers

Individuals or groups responsible for making decisions on public policy in various areas like economy, education, and health.

Stabilize

To make or become stable or more stable; in economic terms, to reduce fluctuations in economic activity.

Federal Reserve Act

A U.S. legislation in 1913 that established the Federal Reserve System as the central banking system of the United States, designed to provide the country with a safer, more flexible, and more stable monetary and financial system.

Fed

The Federal Reserve System, which is the central banking system of the United States, responsible for monetary policy and financial regulation.