Suppose That a Company Has the Following Accounts Receivable Collection $\begin{array}{lr}\text {Paid in the month of sale }&30\%\\\text {Paid in the month following sale }&70\%\\\end{array}$

question 178

Multiple Choice

Suppose that a company has the following accounts receivable collection pattern: $\begin{array}{lr}\text {Paid in the month of sale }&30\%\\\text {Paid in the month following sale }&70\%\\\end{array}$
All sales are on credit. If credit sales for January and February are $200,000 and $100,000 respectively, the cash collection for February is

• A) $210,000
• B) $100,000
• C) $130,000
• D) $140,000
• E) $170,000

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Definitions:

Multiple Comparison

A statistical principle applied when multiple hypothesis tests are conducted simultaneously, requiring adjustment methods to control for the increased risk of Type I error.

Significant Difference

A statistical term indicating that the observed difference between two or more datasets is unlikely to be due to chance at a certain confidence level.

Tukey's Multiple Comparison

A statistical test used to find the differences between means in a set of data, part of post-hoc analysis following ANOVA.

Fisher's LSD

A statistical method used for post-hoc analysis in ANOVA for making pairwise comparisons between group means while controlling Type I error.