A. Average inventory; average daily cost of goods sold
Answer:
a. True
Explanation:
The computation of the average accounts receivable balance is shown below:
= Daily credit sales × day terms
= $2,000 × 60 days terms
= $120,000
We simply multiplied the average amount with the day term so that the average account receivable balance could come
Hence, the given statement is true
Therefore the correct option is a.
B. To provide law and order
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When the price of a good increases, the quantity demanded decreases. When the price of a good decreases, the quantity demanded increases.
