The Following Data Comes from Beaumont Company's Financial Statements for the Year

question 104

Multiple Choice

The following data comes from Beaumont Company's financial statements for the year ended December 31, 2014.(Assume that the balance sheet amounts represent both average and ending balances.) $$\begin{array} { l r } \text { Cash } & \$ 5,000 \\\text { Accounts receivable } & 75,000 \\\text { Inventory } & 32,500 \\\text { Sales } & 525,000 \\\text { Cost of goods sold } & 315,000 \\\text { Net income } & 42,500\end{array}$$ What are Beaumont's accounts receivable turnover ratio and their inventory turnover ratio closest to? $\begin{array}{lr}\text { A/R } & \text { Inventory } \\\text { Turnover } & \text { Turnover }\\\text { A) } 7 \text { times } & 9.7 \text { times } \\\text { B) } 7 \text { times } & 16.1 \text { times } \\\text { C) } 1.4 \text { times } & 9.7 \text { times } \\\text { D) } 1.4 \text { times } & 16.1 \text { times }\end{array}$

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Higher-order Conditioning

A form of learning in which a stimulus is paired with a previously conditioned stimulus, resulting in the new stimulus eliciting the conditioned response.

Classical Conditioning

A learning process that involves creating associations between a naturally occurring stimulus and a previously neutral stimulus.

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention, until it is paired with a unconditioned stimulus to elicit a conditioned response.

Extinction

The gradual weakening and eventual disappearance of a conditioned response when the conditioned stimulus is no longer paired with the unconditioned stimulus.