Last Year, Which Is Used as the Base Year, a fiRm

question 256

Multiple Choice

Last year, which is used as the base year, a firm had cash of $60, accounts receivable of $100, inventory of $200, and fixed assets of $500. This year the firm has cash of $50, accounts
Receivable of $150, inventory of $250, and fixed assets of $550. What is the common-base year
Value of accounts receivable?

• A) .12
• B) .15
• C) .67
• D) 1.16
• E) 1.50

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Definitions:

Sales

The transactions or processes involved in the selling of goods or services in exchange for money or other compensation.

Customers

individuals or entities that purchase goods or services from a business.

Well-Paved Roads

Roads that have been well constructed and maintained, offering smooth and efficient travel.

Speeding Tickets

Legal notices issued by law enforcement to drivers who exceed the speed limits.