If a Certain Household Earns and Spends $24,000 Per Year $1 / 6 .$

question 69

Multiple Choice

If a certain household earns and spends $24,000 per year and, on the average, holds a money balance of $6,000, then the velocity of money for this household is

• A) 6.
• B) \(1 / 6 .\)
• C) 4.
• D) \(1 / 4\)

---

Definitions:

Total Current Assets

The sum of all assets expected to be converted into cash within one year.

Accounts Receivable

Money owed to a company by its debtors for goods and services that have been delivered but not yet paid for.

Current Liabilities

Financial obligations or debts of a business that are due to be paid within one year.

Net Change in Sales

The difference between the sales figures of a current period compared to a previous period, which can indicate growth or decline.