Your Company Has an Average Collection Period of 40 Days

question 87

Multiple Choice

Your company has an average collection period of 40 days and accounts receivables of $315,000.What are the company's annual sales?

• A) $12,600,000
• B) $1,754,808
• C) $2,874,375
• D) $315,000

---

Definitions:

Retinex Theory

A theory in vision science that suggests the human brain perceives colors not just by the wavelengths of light reaching the eye, but also through a process of comparing and analyzing the light reflected from different parts of the scene.

Cerebral Cortex

The outer layer of the cerebrum in the brain, involved in higher brain functions such as thought, action, and perception.

Subliminal Perception

The processing of information by the brain that occurs below the level of conscious awareness.

Cochlea

A spiral-shaped, fluid-filled inner ear structure critical for converting sound vibrations into electrical signals interpreted by the brain as sound.