XYZ's Receivables Turnover Is 10x

question 21

Multiple Choice

XYZ's receivables turnover is 10x.The accounts receivable at year-end are $600,000.What was the sales figure for the year?

• A) $60,000
• B) $6,000,000
• C) $7,200,000
• D) $6,600,000

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Definitions:

Reserve Ratio

The fraction of depositors' balances banks must have on hand as cash, a regulatory requirement determined by central banks to ensure the stability and liquidity of the banking system.

Monetary Policy

The process by which a central bank controls the supply of money in the economy, primarily through interest rates.

Federal Reserve District Banks

The 12 regional banks in the Federal Reserve System, each serving a specific geographic area of the United States, responsible for implementing the country's monetary policies.

Recessions

A phase of limited economic decrease, with trade and industry activity lowering, usually identified by a decrease in GDP in two adjacent quarters.