The Carrying Value of a Firm's Account Receivable Is $1,000,000

question 49

Multiple Choice

The carrying value of a firm's account receivable is $1,000,000 and the average collection period is 55 days.The firm's credit sales per day are:

• A)$33,333.33
• B)$18,181.82
• C)$1,000,000.00
• D)$1,333,333.33
• E)None of the above.

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Definitions:

Canadian Common Stocks

Shares representing equity ownership in corporations based in Canada, entitling holders to vote on corporate matters and receive dividends.

Long Bonds

Bonds with a long duration to maturity, typically over 10 years, often associated with higher risk but higher yield.

Capital Gains Yield

The price appreciation component of the total return on an investment, calculated as the increase in the investment's price divided by its initial price.

Dividends

Profit distributions paid out to shareholders by a company.