Red Company Has the Following Information

question 105

Multiple Choice

Red Company has the following information:
Net credit sales = $400,000
Net income = $100,000
Average total assets = $80,000
Average accounts receivable = $20,000
What is Red's average collection period (rounded to the nearest whole day) ?

• A)73 days.
• B)18 days.
• C)9 days.

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Definitions:

Atkinson-Shiffrin Theory

A model of memory proposed by Richard Atkinson and Richard Shiffrin that describes human memory as having three key stages: sensory memory, short-term memory, and long-term memory.

Short-term Memory

The capacity for holding a small amount of information in an active, readily available state for a short period of time.

Sensory Memory

The shortest-term element of memory, it's the ability to retain impressions of sensory information after the original stimuli have ended, acting almost as a buffer for stimuli through the senses.

Schemas

Cognitive structures or frameworks that help individuals organize and interpret information.