Phil Just Started a New Habit of Eating Once a Week

question 40

Multiple Choice

Phil just started a new habit of eating once a week at Mr. Sub restaurants. On average, he spends about $10 per meal. Phil says, "I'm 20 years old and I plan on eating at Mr. Sub until I am 50 years old." Phil's lifetime value at Mr. Sub could be best estimated by which calculation?

• A)$10 × 50
• B)$10 × 20
• C)$10 × 52 × 50
• D)$10 × 52 × 30
• E)$10 × 52 × 20

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Definitions:

General Journal

A primary accounting record where financial transactions are chronologically recorded before being posted to specific accounts in the general ledger.

Purchases Transactions

Activities related to buying goods and services for use or resale by a business.

Sales Transactions

The process of exchanging goods or services for money or other assets, recorded by businesses as revenue.

Asset Turnover Ratio

A financial metric indicating how efficiently a company utilizes its assets to generate sales revenue.