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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The amount reported on the balance sheet for accounts receivable (gross accounts receivable minus the allowance for doubtful accounts) reflects the ONet realizable value. O Dollar amount per the invoice. O Cost of transportation to the buyer. O Gross profit.
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If the dollar amount in ending accounts payable is greater than the dollar amount in beginning accounts payable, then a. inventory must have increased during the period. b. cost of goods sold must be greater in this period than in the prior period. c. cost of goods sold must have increased by the same amount. d. payments to suppliers during the period must have been less than the amount of inventory purchased on account. e. cash must have decreased by the same amount. Choose the best answer choice
1. Which of the following is correct when a company uses the net price method of recording receivables? a. The company records the total invoice price in both the "Accounts Receivable" and "Sales" accounts at the time of sale as if no cash discount is involved b. Sales discount taken is deducted from sales on the income statement to determine net sales c. Cash discount is reflected in the accounting records only when the discount is taken d. Cash discount is reflected in the accounting records only when the discount is not taken e. none of the above
For purposes of adjusting financial statements for changes in the general price level, monetary items consist of: a. Assets and liabilities whose amounts are fixed by contract or otherwise in terms of pesos b. Assets and liabilities classified as current c. Cash and cash equivalents plus all receivables d. Cash, other assets expected to be converted into cash and current liabilities
Which of the following is used in computing cash payments for merchandise using the direct method? a.Net income b.An increase in accounts receivable c.An increase in accounts payable d.A decrease in accounts receivable
Inventory Turnover Ratio shows the speed at which the Sales will be converted into cash. Select one: True False‏
5.Blige Corporation had sales revenue of $12,000,000 in 2019 and$15,000,000 in 2020. Accounts receivable were $1,800,000 at the end of2019 and $2,000,000 at the end of 2020.Required(a)Calculate the accounts receivable turnover ratio for 2019 and 2020.(b)Has the management of accounts receivable improved or worsenedfrom 2019 to 2020?(c)What are the advantages and disadvantages of selling goods oncredit?(d)How much cash did Blige Corporation collect from its customers in2020?(e)If sales in 2021 were expected to be $22,500,000, what would youexpect accounts receivable to be at the end of 2021?Does a major increase in accounts receivable create
. Which one of the following defines the cash cycle? A. Inventory period plus the accounts receivable period B. Inventory period plus the accounts payable period C. Operating cycle minus the inventory period D. Operating cycle minus the accounts payable period E. Operating cycle minus the accounts receivable period
When a deposit on returnable containers is forfeited, the firm holding the deposit will experience: A. a decrease in cost of goods sold. B. an increase in current liabilities. C. an increase in account receivable. D. an increase in revenue.