A Company with Net Sales of $500,000,a Beginning Balance of Net

question 6

Multiple Choice

A company with net sales of $500,000,a beginning balance of net receivables of $80,000,and an ending balance of net receivables of $90,000 has a collection period of:

• A) 197 days
• B) 62 days
• C) 54 days
• D) 6 days

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Definitions:

Condition Precedent

A condition that operates to give rise to a contracting party’s duty to perform.

Close of Escrow

The finalization of a real estate transaction, where all conditions have been met and the property's title is transferred from the seller to the buyer.

Condition Subsequent

A condition in a contract that, when it occurs, terminates an existing obligation, making the contract's terms no longer binding.

Al Gore

A former Vice President of the United States who has been notably active in raising awareness about global warming and environmental issues.