If Accounts Receivable Are $45,000 and Are Directly Proportional to Total

question 5

Multiple Choice

If accounts receivable are $45,000 and are directly proportional to total sales, the forecast accounts receivable for next year's 5% increase in sales to $125,000 would be:

• A) $47,250.
• B) $40,500.
• C) $49,950.
• D) impossible to calculate without last year's credit sales.

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Definitions:

Assumption of the Risk

A legal theory in personal injury cases where the plaintiff is considered to have voluntarily accepted a known risk associated with an activity or condition, possibly limiting the defendant's liability.

Comparative Negligence

A principle of tort law that compares the negligence of the conflicting parties and apportions damages accordingly.

Res Ipsa Loquitur

A Latin term that means "the thing speaks for itself," used in tort law to refer to cases where the negligence is inferred from the nature of the accident.

Actual Cause

The true reason an event occurred, which directly led to the damage or injury, forming a basis for establishing legal liability.