If the Collection Period of a Company Is 31 Days

question 14

Multiple Choice

If the collection period of a company is 31 days, and the average receivables are $70,060, what is the total amount of the credit sales?

• A) $2,260
• B) $83,126
• C) $824,900
• D) $2,171,860

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Definitions:

Transfer Payments

Payments made by governments to individuals or other government entities without receiving any goods or services in return, such as welfare benefits or subsidies.

Uncontrollable Budget Items

Government expenditures that are considered mandatory and not subject to annual review or adjustment by Congress, such as interest payments on national debt.

Congressional Committee Framework

The organizational system of committees within the United States Congress, designed to facilitate detailed examination and discussion of legislative proposals.

Budget Process

A systematic method used by organizations or governments to allocate resources, assess revenues, and determine expenditures for a specific time period.