A Firm Has Net Working Capital of $600,net Fixed Assets

question 49

Multiple Choice

A firm has net working capital of $600,net fixed assets of $2,400,sales of $8,000,and current liabilities of $800. How many dollars worth of sales are generated from every $1 in total assets?

• A) $2.11
• B) $2.32
• C) $3.73
• D) $4.52
• E) $6.70

Realize the significance of the trial balance in confirming the mathematical equality of debits and credits in the accounting system.

Recognize the procedural steps in the recording process, including analyzing, journalizing, and posting transactions.

Understand error detection through trial balance preparation and its limitations.

Familiarize with general ledger components, such as the explanation column and reference column, and their purposes.

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Definitions:

Insurance Policy

A contract between an insurer and a policyholder that provides compensation for specified losses in exchange for premiums paid.

Capitation

The health care provider is paid a fixed amount per member per month for each patient who is a member of a particular insurance organization regardless of whether services were provided.

Precertification

Refers to obtaining plan approval for services prior to the patient receiving them; refers to seeking approval for a treatment (surgery, hospitalization, diagnostic test) under the patient’s insurance contract.

Specified Outpatient

Specified Outpatient refers to particular outpatient medical treatments or procedures that are predefined under a health plan or policy for coverage or reimbursement.