need help. v Your Submission: Started on Dec 01 at 23:34 Which of...

need help

Image transcription text

v Your Submission: Started on Dec 01 at 23:34 Which of the following demonstrates that a company is managing its receivables well? The company has many short term loans with high interest. The company is losing interest that could be earned by investing. The company is cash poor. The company has cash to pay its bills. In calculating a company's accounts receivable turnover ratio, which of the following sets of factors would be used? Total assets and average accounts receivable Total accounts receiv sales revenueNet inco ceivable )Sales revenue and average accounts receivable The ratio that is an attempt to determine how many times, in a year, a company collects its receivables is A the: Inventory turnover Accounts receivable turnover Accounts receivable collected Average collection period The ratio that shows how long it takes for a company to collect its receivables is the: Average collection period Accounts receivable collected Number of days in receivables Accounts receivable turnover Which of the following factors are used to compute the average collection period of accounts receivable? A Inventory turnover and 365 days Average accounts receivable and cost of goods sold Accounts receivable turnover and 365 days Net sales and average inventory Iffy Company and Benchmark Company operate in the same industry. Benchmark Company is widely viewed as managing its business very well and is the standard to which other companies compare themselves. Here are accounts receivable-related financial ratio values for Iffy and Benchmark for Year 1 and Year 2: IFFY Year 1 Year Receivables Turnover 12 10 Average Collection Period 304 36 BENCHMARK Year 1 Year 2 Receivables Turnover 15 16 Average Collection Period 243 22.8 Which ONE of the following statements is true? iffy's accounts receivable manage are less efficient in Year 2 compared to Year 1. Iffy's accounts receivable management practices became more efficient in Year 2 compared to Year iffy's accounts receivable managemen are more efficient than are Benchmark's in both Year 1 and Year 2. Benchmark's accounts receiv ficient in Year 2 compared to Year 1. Scary Company and Excellent Company operate in the same industry. Here are accounts receivable- related financial ratio values for Scary and Excellent for Year 1 and Year 2: EXCELLENT Year Year 2 Receivables Turnover 12 10 Average Collection Period 30 SCARY Year 1 Year Receivables Turnover Average Collection Period 24.3 Which ONE of the following statements is true? Excellent's accounts receivable tices are more efficient than are Scary's in both Year 1 and Year 2. Scary's accounts receivable management practices became more efficient in Year 2 compared to Year 1. Excellent's accounts receiv Hicient in Year 2 compared to Year 1. Scary's accounts receivable management practices are more efficient than are Excellent's in both Year 1 and Year 2. What is a consequence of inefficient management of accounts receivable? Too much cash tied up in the form of receivables Increase in time from the purchase of inventory until the sale of that inventory Increase Reduction time it takes to make payments to suppliers Randolph Company had an average collection period of 45 days in Year 1 and 35 days in Year 2. Which ONE of the following statements is TRUE? ()The amount of the co accounts payable decreased from Year 1 to Year 2. The company uickly in Year 2 than they did in Year 1. The company's credit custor onger to pay in Year 2 than they did in Year 1. The amount of the con ecreased from Year 1 to Year 2. The company ger to sell inventory in Year 2 than it did in Year 1. At the end of Year 1, Keith Company's bad debt allowance, as a percentage of accounts receivable, was 15%. By the end of Year 2, that percentage was 10%. Given these data, which ONE of the following statements is true with respect to the creditworthiness of the credit customers of Keith Company at the end of Year 2 compared to Year 1? "The average creditworthiness of the credit customers DECLINED during the year. In other words, the quality of the accounts receivable DECLINED during the year. " The average creditworthiness of the credit customers IMPROVED during the year. In other words, the quality of the accounts receivable IMPROVED during the year. These data do not allow us to draw ANY conclusions about the average creditworthiness of the Vaststrom Company credit customers. The average creditworthiness of the credit customers STAYED THE SAME during the year. In other words, the quality of the accounts receivable STAYED THE SAME during the year. Submit Assessment

... Show more