Financial Accounting, 8th Edition
8th Edition
ISBN: 9780078025556
Author: Robert Libby, Patricia Libby, Daniel Short
Publisher: McGraw-Hill Education
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Question
Chapter 13, Problem 2MCQ
To determine
Ascertain that which of the following options would not directly change the receivables turnover ratio for a company.
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Students have asked these similar questions
Which of the following would not be reported on the financial statement?
a. Sales discount taken
b. Trade receivables
c. Trade discounts
d. Sales discounts not taken
If sales were overstated by recording a false credit sale at the end of the year, where could you find the false “dangling debit”?a. Inventory.b. Cost of goods sold.c. Bad debt expense.d. Accounts receivable.
Which is correct with regards to the effects of restricting credit standards?
a. Investment in accounts receivable will likely increase
b. An increase in recognition of doubtful accounts expense will probably happen
c. Positive impact on the net profit can be noted from decline in the quantity of goods sold
d. Quantity of units sold will probably decrease and will result to a lower sales revenue
Chapter 13 Solutions
Financial Accounting, 8th Edition
Ch. 13 - Prob. 1QCh. 13 - Prob. 2QCh. 13 - Prob. 3QCh. 13 - Prob. 4QCh. 13 - What is ratio analysis? Why is it useful?Ch. 13 - What are component percentages? Why are they...Ch. 13 - Prob. 7QCh. 13 - Prob. 8QCh. 13 - Prob. 9QCh. 13 - Prob. 10Q
Ch. 13 - Prob. 11QCh. 13 - Prob. 12QCh. 13 - Prob. 13QCh. 13 - A company has total assets of 500,000 and...Ch. 13 - Prob. 2MCQCh. 13 - Prob. 3MCQCh. 13 - Prob. 4MCQCh. 13 - Prob. 5MCQCh. 13 - Prob. 6MCQCh. 13 - Prob. 7MCQCh. 13 - Prob. 8MCQCh. 13 - Prob. 9MCQCh. 13 - Prob. 10MCQCh. 13 - Prob. 1MECh. 13 - Prob. 2MECh. 13 - Prob. 3MECh. 13 - Prob. 4MECh. 13 - Prob. 5MECh. 13 - Prob. 6MECh. 13 - Prob. 7MECh. 13 - Prob. 8MECh. 13 - Prob. 9MECh. 13 - Prob. 10MECh. 13 - Prob. 1ECh. 13 - Prob. 2ECh. 13 - Prob. 3ECh. 13 - Prob. 4ECh. 13 - Prob. 5ECh. 13 - Prob. 6ECh. 13 - Prob. 7ECh. 13 - Prob. 8ECh. 13 - Prob. 9ECh. 13 - Prob. 10ECh. 13 - Prob. 11ECh. 13 - Prob. 12ECh. 13 - Prob. 13ECh. 13 - Prob. 1PCh. 13 - Prob. 2PCh. 13 - Prob. 4PCh. 13 - Prob. 5PCh. 13 - Prob. 6PCh. 13 - Prob. 7PCh. 13 - Prob. 8PCh. 13 - Prob. 9PCh. 13 - Prob. 10PCh. 13 - Prob. 1APCh. 13 - Prob. 2APCh. 13 - Prob. 3APCh. 13 - Prob. 4APCh. 13 - Prob. 5APCh. 13 - Prob. 6APCh. 13 - Prob. 1CPCh. 13 - Prob. 2CPCh. 13 - Prob. 3CPCh. 13 - Prob. 4CPCh. 13 - Prob. 5CPCh. 13 - Prob. 6CP
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Similar questions
- The basis of estimating uncollectible accounts that focuses on the income statement rather than the balance sheet is the a. Percentage of sales. b. Aging of the accounts receivable. c. Direct write off of receivables. d. Percentage of receivables.arrow_forwardProblem Attachedarrow_forwardWhich of the following items in the balance sheet does NOT have a constant relationship with sales in general when we use the percent of sale method to construct pro forma financial statements? Retained earnings Inventory Accounts receivables Accounts payablesarrow_forward
- Which of the following methods may not be appropiate for estimating bad debt expense? a. Percentage of net credit sales b. Percentage of outstanding accounts receivables c. Aging of accounts receivables d. Percentage of salesarrow_forwardA 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 measuresarrow_forwardWhich of the following methods may not be appropiate for estimating bad debt expense? a. percentage of net credit sales b. percentage of outstanding accounts receivable c. aging of accounts receivable d. percentage of salesarrow_forward
- 7. Which of the following statements regarding the gross and net methods for trade accounts payable is not true? a. the net method overstates accounts payable at the end of the accounting periodb. the net method highlights management inefficiency because purchase discounts lost arerecorded whenever an invoice is paid after the cash discount period has expiredc. the gross method is more widely used in practiced. the net method more accurately measures liquidityarrow_forward25) Under the direct-write-off method, uncollectible accounts expense is recognized A. As a percentage of net sales during the period. B. As a percentage of net credit sales during the period. C. As indicated by aging the accounts receivable at the end of the period. D. As specific accounts receivable are determined to be worthless.arrow_forwardWhich of the following is an example of a conservative accounting practice? a. Estimate the allowance for uncollectible accounts to be a larger amount.b. Do not write down inventory for declines in net realizable value (estimated selling price).c. Record a lower amount of depreciation expense in the earlier years of an asset’s life.d. Record sales revenue before it is actually earned.arrow_forward
- Which of the following statements is true?a. Credit sales increase receivables.b. Collections on account decreasereceivables.c. Write-offs of accounts decreasereceivables.d. All of these statements are true.arrow_forward4. Which of the following is not a quick asset? c. Accounts Receivable d. Inventory а. Cash b. Cash Equivalents 5. It provides a rough approximation of the average time that it takes to collect receivables. c. Accounts Receivable turnover Inventory turnover b. Average age of receivables а. d. none of the abovearrow_forwardWhat are some possible negative signals when the product of the accounts receivable turnover ratio is lower (i.e., fewer times)?arrow_forward
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