Laventhol Corporation Had Accounts Receivable of $100,000 at 1\1

question 53

Multiple Choice

Laventhol Corporation had accounts receivable of $100,000 at 1\1.The only transactions affecting accounts receivable were sales of $900,000 and cash collections of $850,000.The accounts receivable turnover is

• A)6.0.
• B)6.6.
• C)7.2.
• D)9.0.

---

Definitions:

Riskless Assets

Financial instruments that are considered to have a minimal possibility of default, often yielding a guaranteed, but lower, return.

Utility Function

A mathematical representation that ranks preferences of consumers by assigning a numerical value to each possible bundle of goods, indicating the level of satisfaction or utility derived.

Expected Utility

A theory in economics that calculates the utility or satisfaction a person expects to receive from different possible outcomes in a risky or uncertain situation.

Walking To Work

The act of commuting to one's place of employment by foot, which can offer health benefits and reduce traffic congestion and pollution.