Given an Accounts Receivable Turnover of 8 and Annual Credit

question 24

Multiple Choice

Given an accounts receivable turnover of 8 and annual credit sales of $362,000, the average collection period (360-day year) is

• A) 90 days.
• B) 45 days.
• C) 75 days.
• D) 60 days.

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Definitions:

Age Group

A category of people defined by a range of ages, often used in research and demographics.

Probability

The estimation of an event's likelihood, depicted as a numeral between 0 and 1.

Club Sandwich

A sandwich typically made with three slices of bread and filled with ingredients such as poultry, bacon, lettuce, tomato, and mayonnaise.

Cola

A sweetened, carbonated soft drink flavored with extracts from cola nuts and other ingredients.