If Challenge Corporation Has Sales of $2 Million Per Year

question 68

Multiple Choice

If Challenge Corporation has sales of $2 million per year (all credit) and an average collection period of 35 days, what is its average amount of accounts receivable?

• A) $191,781
• B) $57,143
• C) $5,556
• D) $97,222

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Definitions:

Vacation Time

Paid or unpaid time off work granted by employers to employees for leisure and rest.

Observed Holidays

Public or private holidays recognized and celebrated by a society, often with official status.

Performance Evaluations

Assessments of an employee's work performance, typically conducted on a regular basis to determine areas of improvement and to facilitate growth and development.

Raises

Typically refers to an increase in salary or wages provided to an employee by an employer.