The accounts receivable turnover ratio is computed by dividing
a. gross sales by ending net receivables.
b. gross sales by average net receivables.
c. net sales by ending net receivables.
d. net sales by average net receivables.
Answer: d. net sales by average net receivables.
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Reserves held by banks at the Fed that earn implicit interest payments in the form of earnings credits for Fed services are known as
a. required clearing balances. b. reserve requirements. c. excess reserves. d. non-transaction deposits.
Alex is an attorney representing Beron Enterprises. Alex learns that Beron Enterprises is about to purchase TrieffCorp, a publicly traded company. Alex knows that the price of the stock will rise as soon as Beron Enterprises announces the acquisition. Based on this information, Alex purchases stock in TrieffCorp. Alex is
a. liable under tipper/tippee theory b. liable under misappropriation theory c. liable under the Private Securities Litigation Reform Act of 1995 d. not liable because he is not an insider