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:

Paid-In Capital

The total amount of capital that shareholders have directly invested in a company through the purchase of its securities.

Retained Earnings

The portion of net income that is retained by the corporation rather than distributed to its shareholders as dividends.

Organizational Expenses

Costs incurred during the formation of a company, such as legal fees, registration fees, and promotional expenses.

Intangible Assets

Non-physical assets possessed by a company, such as patents, trademarks, and goodwill, that have value and can produce future economic benefits.