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  3. Study Set
    Accounting for Non Specialists
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    Exam 13: The Management of Working Capital
  5. Question
    A Firm Has Annual Credit Sales of $2m, an Average
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A Firm Has Annual Credit Sales of $2m, an Average

Question 13

Question 13

Multiple Choice

A firm has annual credit sales of $2m, an average debtor's balance of $400,000 and works 365 days a year. The average settlement period for accounts receivable is:


A) 73 days.
B) 15 days.
C) 150 days.
D) 54.7 days.

Correct Answer:

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