Given an Accounts Receivable Turnover of 10 and Annual Credit

question 110

Multiple Choice

Given an accounts receivable turnover of 10 and annual credit sales of $900,000,the average collection period is

• A) 18.25 days.
• B) 36.50 days.
• C) 90 days.
• D) 40.56 days.

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Definitions:

Existing State

The current condition or situation of a system, organization, or individual before any changes or interventions are made.

Desired State

denotes the ideal or targeted condition or status that an individual, group, or organization aims to achieve after implementing changes or reaching goals.

Ill-structured Problem

A problem that lacks a clear path to a solution, often requiring creative thinking and decision-making to resolve.

Sluggish Sales

A situation where the rate of product sales is consistently slow or declining, indicating a potential issue with demand or market conditions.