Financial Statements for Marcalo Company Appear Below

question 67

Multiple Choice

Financial statements for Marcalo Company appear below:
-Marcalo Company's average sale period for Year 2 was closest to:

• A) 20.6 days
• B) 29.4 days
• C) 30.0 days
• D) 42.9 days

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Definitions:

Negotiability

The characteristic of a document (such as a check or note) signifying that it can be transferred from one person to another in a manner that the recipient takes it free of most defenses that could be raised by the original maker or drawer.

Agent's Signature

The signature of a person who is authorized to act on behalf of another, indicating consent or agreement in a contractual context.

Maker

In the context of contracts, the party who creates or signs a promissory note to pay a certain amount of money to another party.

Drawer

In banking and finance, a drawer refers to the party that writes and signs a check or draft, directing a bank or other financial institution to pay a specified amount to a named payee.