Dieringer Corporation's Most Recent Balance Sheet and Income Statement Appear

question 12

Multiple Choice

Dieringer Corporation's most recent balance sheet and income statement appear below:
-The average sale period for Year 2 is closest to:

• A)36.9 days
• B)248.0 days
• C)22.3 days
• D)32.8 days

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Definitions:

Cash Account

An account that records all transactions involving cash inflows and outflows.

Petty Cash Fund

A minor sum of money maintained in reserve to cover minor, immediate costs.

Cash Over and Short

An account that records discrepancies between actual cash received and the expected amount, reflecting errors or theft.

Petty Cash Fund

A small amount of cash kept on hand for making immediate payments for miscellaneous, small expenses.