Dividing net credit sales or net sales by average net

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ACCT 701 Module 2 Assessment 2 Review 2018.docx

Dividing net credit sales or net sales by average net accounts receivable from ACCT 701 at Louisiana State University, Shreveport

Question 7   Dividing net credit sales , or net sales , by average net accounts receivable yields : Select one :
a . Receivables ageing .
b . Asset turnover .
c . Not a meaningful calculation since sales and receivables are both debits .
d . Inventory turns .
e . Accounts receivable turnover .
Answer:  d .   Accounts receivable turnover .
Question 8   Which of the following statements is false ? Select one :
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Question 9   Hunt Company estimates uncollectible accounts using the percentage - of - receivables method and expects that 5 percent of outstanding receivables will be uncollectible for 2014 . The balance in Accounts Receivable is $ 200,000 , and the allowance account has a $ 3,000 credit balance before adjustment at year - end . The uncollectible accounts expense for 2014 will be : Select one :
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Question 7Dividing net credit sales, or net sales, by average net accounts receivable yields:Select one:a. Receivables ageing.b. Asset turnover.c. Not a meaningful calculation since sales and receivables are both debits.d. Inventory turns.e. Accounts receivable turnover.
Question 8Which of the following statements is false?
Question 9Hunt Company estimates uncollectible accounts using the percentage-of-receivables method and expects that 5 percent of outstanding receivables will be uncollectible for 2014. The balance in Accounts Receivable is $200,000, and the allowance account has a $3,000 credit balance before adjustment at year-end. The uncollectible accounts expense for 2014 will be:

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