Wiseman Bookstores Has an Accounts Receivable Turnover of 12

question 56

Multiple Choice

Wiseman Bookstores has an accounts receivable turnover of 12.This means that

• A) the company sells and replaces its merchandise inventory twelve times each year.
• B) one-twelfth of the company's assets are financed by creditors.
• C) the company's sales figure is twelve times its accounts receivable figure.
• D) the company collects its accounts receivable about every thirty days.
• E) the company had $12 in assets for every $1 of current liabilities.

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Definitions:

Demand Schedule

A chart displaying the amount of a product or service that buyers are ready and capable of buying at different price levels.

Total Utility

The total satisfaction or benefit received by consuming a particular quantity of a good or service.

Demand Curve

A visual depiction showing how the demand for a product or service varies with changes in its price over a specific time frame.

Consumer Surplus

The gap between the total sum consumers are ready and able to spend on a good or service versus the total sum they actually spend.