-The Above Figure Shows the Market for Capital

question 83

Multiple Choice

-The above figure shows the market for capital.With the tax on capital income,the interest rate is ________ and firms use ________ million of capital.

• A) 2 percent; $2,000
• B) 3 percent; $2000
• C) 6 percent; $1,000
• D) 4 percent; $1,000
• E) 2 percent; $1,000

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Definitions:

Accounts Receivable Turnover

A financial metric that measures how efficiently a company collects on its receivables or the speed of their credit sale conversions into cash.

Receivables Collected

The amount of money received from customers in payment of accounts receivable during a given period.

Allowance Method

An accounting technique used to estimate uncollectible accounts receivable and adjust the balance of accounts.

Uncollectible Accounts

Accounts receivable that are considered unlikely to be collected and written off as a loss.