Time left 0:53:All of the following statements are true EXCEPT:a. Ideally, a company should measure receivables in terms of theirpresent value, that is, the discounted value of the cash to be receivedin the future.O b. Trade discounts are used to avdid freguent changes in catalogs and toalter prices for different quantities purchaseD.O c. In the net method, sales discounts are reported as a deduction fromsales.O d. In the gross method, sales discounts are reported as a deduction fromsales.Next pagee

Receivables are those accounts or customers to whom business has made sale of goods or services and…

All of the following statements are true EXCEPT: O a. Ideally, a company should measure receivables in terms of their present value, that is, the discounted value of the cash to be received in the future. O b. Trade discounts are used to avdid frequent changes in catalogs and to alter prices for different quantities purchaseD. O c. In the net method, sales discounts are reported as a deduction from sales. O d. In the gross method, sales discounts are reported as a deduction from sales.

All of the following statements are true EXCEPT: O a. Ideally, a company should measure receivables in terms of their present value, that is, the discounted value of the cash to be received in the future. O b. Trade discounts are used to avdid frequent changes in catalogs and to alter prices for different quantities purchaseD. O c. In the net method, sales discounts are reported as a deduction from sales. O d. In the gross method, sales discounts are reported as a deduction from sales.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

A bank that is examining the ratio of annual costs of goods sold to average inventory, is examining which category of ratios? a.Profit measures b.Operating efficiency measures c.Liquidity measures d.Expense control measures
When inventory is sold on account, which of the following is true? Operating cash flows are increased at the time of sale. Total assets are increased by the amount of the gross profit. Net income is increased by the amount of the sales price. Revenue is not increased until the cash is received. Both net income and liabilities are increased by the amount of the sales price.
Which of the following increases the cash conversion cycle? A.A decrease in inventory turnover B.An increase in the cash discount C.An increase in accounts payable D.A decrease in inventory level
Gross profit is the gross sales price charged for the goods sold A.True B.False
10. Choose the options to correctly complete the following statement. Some balance sheet and income statement accounts that vary directly with sales include: 1. Cost of goods sold II. Depreciation III. Accounts payable IV. Accounts receivable O I, II, III only O I, II, IV only O I, III, IV only O I, II, III, and IV
Which of the following calculations of receivable turnover is correct? A. Number of days in the year divided by receivable turnover. B. Net sale on account divided by average receivables. C. Cost of goods sold divided by average inventory. D. Net income divided by net sales.