During 2022, Sedgewick Inc

question 142

Multiple Choice

During 2022, Sedgewick Inc.had sales on account of $528,000, cash sales of $216,000, and collections on account of $336,000.In addition, they collected $5,800 which had been written off as uncollectible in 2021.As a result of these transactions, the change in the accounts receivable balance from the beginning of the year to the end of the year indicates a

• A)$402,200 increase.
• B)$192,000 increase.
• C)$186,200 increase.
• D)$408,000 increase.

Compare the economic well-being of individuals based on consumption choices and price levels.

Recognize the implications of having a utility function based on the minimum of x and 2y.

Interpret real-income changes and their impact on consumption decisions.

Evaluate the consistency of consumer behavior with the Strong and Weak Axioms of Revealed Preference.

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Definitions:

Monthly Disburses

This refers to the amount of money a company pays out on a monthly basis, covering expenses such as salaries, utilities, and rent.

Fixed Cost

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Daily Interest Rate

The interest rate expressed as a daily percentage, indicating the amount of interest charged or earned each day.

Collection Float

The time delay between when a check is deposited and when the funds become available in the account.