A Thu Jun 20 LT Document (23) Home Insert Draw Layout Review View Calibri Regular (B I U A. 11 7. Each of the following is a feature of internal control, except (2 Points) a. management planning. b. periodic independent verification. C. limited access to assets. d. authorization of transactions. 8. If it takes Gledhill Company 45 days to sell inventory, 23 days to collect from the sale, and creditors' payment terms are 30 days, the financing period is (2 Points) a. 98 days. b. 23 days. C. 45 days. d. 38 days. !!
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
7. Each of the following is a feature of internal control, except
a. management planning. b. periodic independent verification. c. limited access to assets. d. authorization of transactions.
8. If it takes Gledhill Company 45 days to sell inventory, 23 days to collect from the sale, and creditors payment terms are 30 days, the financing period is
a. 98 days. b. 23 days c. 45 days. d. 38 days
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
