A Firm Starts with $5,000 of Accounts Receivables and Ends

question 19

Multiple Choice

A firm starts with $5,000 of accounts receivables and ends the period with $4,000 of receivables.If it collected $4,000 of receivables during the period,what was the amount of sales?

• A) $19,000
• B) $20,000
• C) $21,000
• D) $24,000

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Definitions:

Earnings Per Share

A financial ratio that indicates the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of a company's profitability.

Dividend

A portion of a company's earnings distributed to its shareholders, typically in the form of cash payments or additional shares.

Dividend Payout Ratio

A financial metric indicating the proportion of earnings a company pays to its shareholders as dividends, typically expressed as a percentage.

Net Income

The net income of a business once all costs and taxes are subtracted from its total revenue.