If the Collection Period of a Company Is 30 Days,and

question 118

Multiple Choice

If the collection period of a company is 30 days,and the average receivables are $83,000 what is the total amount of the credit sales? (Round any intermediary calculations to two decimal places and your final answer to the nearest dollar. )

• A)$2,767
• B)$6,822
• C)$83,000
• D)$1,009,835

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Definitions:

Liquidator's Receipts

The proceeds collected by a liquidator during the process of winding up a company, distributed to claimants and creditors according to statutory priorities.

Joint Arrangements

Agreements between two or more parties to undertake an economic activity that is subject to joint control.

Joint Ventures

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task.

Net Assets

The total assets of a company minus its total liabilities, representing the shareholders' equity.