The Collection Period of Armie's for 2011 Was 30 Days;

question 74

Multiple Choice

The collection period of Armie's for 2011 was 30 days; total credit sales were $7,300,000; and average receivables were $600,000. If sales increase to $8,030,000, and the average receivables stays the same, what happens?

• A)The collection period is now 32 days.
• B)The average receivables are now $660,000.
• C)One day's sales equals $20,000.
• D)The collection period is now 27 days.

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Definitions:

Custody Dispute

A legal conflict regarding the guardianship of a child between parties, typically following a separation or divorce.

Mediation

A voluntary and confidential process in which a neutral third party helps disputing parties reach a mutually satisfactory settlement.

Arbitration

A method of resolving disputes outside the courts, in which a neutral third party makes a binding decision.

Summary Jury Trial

A shortened, advisory jury process used as an alternative dispute resolution technique, where the verdict is not legally binding.