John Doe Participates in a Welfare Scheme Which Pays Him

question 12

Multiple Choice

John Doe participates in a welfare scheme which pays him $6,000 dollars.He can work for $4.00 an hour.If there are 50 working weeks in a year, how many hours a week would he have to work to make as much as he would on welfare?

• A)20
• B)30
• C)40
• D)15

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Definitions:

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects cash from its credit sales by dividing net credit sales by the average accounts receivable.

Allowance For Bad Debts

An estimate of the amount of credit sales that are expected not to be collected, which is subtracted from total receivables in a company's financial statements to show a more accurate picture of net revenue.

Sales Volume

The total quantity of sales of a product or service within a specified period.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term and long-term obligations, calculated as current assets divided by current liabilities.