If the Turnover Period for Accounts Receivable Is 8

question 36

Multiple Choice

If the turnover period for accounts receivable is 8.1 times per annum, what is the average number of days it takes to collect cash from accounts receivable?

• A)81 days.
• B)45 days.
• C)295 days.
• D)60 days.

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Definitions:

Deviation

A measure of the difference between observed values and the expected value.

Asch

Refers to Solomon Asch, known for his research on conformity, including the famous Asch conformity experiments.

Conformity

The act of aligning one's beliefs, attitudes, and behaviors with those of a group or societal norms, often as a result of perceived pressure.

Social Influence

Social influence encompasses the ways in which individuals change their behavior to meet the demands of a social environment. It covers conformity, compliance, and obedience within groups.