The Following Information Has Been Obtained on Alberta Drilling Company

question 31

Multiple Choice

The following information has been obtained on Alberta Drilling Company for 2015:

The receivables turnover and average collection period for Alberta Drilling Company are:

• A) Receivables turnover: 67.59; collection period: 5.40 days
• B) Receivables turnover: 40.56; collection period: 9.00 days
• C) Receivables turnover: 9.00; collection period: 40.56 days
• D) Receivables turnover: 5.40; collection period: 67.59 days

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Definitions:

Outputs

The goods or services produced by a company or an economy over a certain period of time.

Increasing Opportunity Costs

A principle stating that as the production of a good increases, the opportunity cost of producing an additional unit of this good also increases.

Bowed-Out Shape

Describes a concave production possibilities frontier that reflects increasing opportunity costs as production of one good is increased.

Attainable And Unattainable

Describes whether a certain state or outcome can be achieved with the available resources (attainable) or not (unattainable), often used in the context of production and economics.