The Following Information Was Extracted from the Financial Records of Ross

question 50

Multiple Choice

The following information was extracted from the financial records of Ross Ltd for the year ended 30 June 2018: $\begin{array}{ll}\text { Cash Sales } & \$ 50,000 \\\text { Credit Sales } & 200,000 \\\text { Accounts receivable } & 25,000 \\\text { Cost of Sales } & 130,000\end{array}$ If there are 365 trading days per year, calculate for the managing director the number of days that accounts receivable are outstanding at 30 June 2018.

• A)86 days
• B)51 days
• C)114 days
• D)46 days

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Definitions:

Power Distance

A cultural dimension that reflects the extent to which less powerful members of organizations and institutions accept and expect that power is distributed unequally.

Formality

The degree to which actions, processes, or relationships in professional settings are governed by established rules and procedures.

North American Free Trade Agreement

A trilateral trade bloc in North America created to reduce trading costs, increase business investment, and help North America be more competitive in the global marketplace.

Tariffs

Taxes imposed on imported goods, intended to regulate trade, protect domestic industries, or generate revenue for the government.