The receivable turnover ratio is a comparison of the allowance account to receivables that measures the...
The receivable turnover ratio is a comparison of the allowance account to receivables that measures the percentage of receivables that are expected to be uncollectible in the future.
True or False
Homework Answers
Answer-----------False.
.
The receivables turnover ratio tells how effective the company is in collecting cash from its credit customers. The receivables turnover ratio is also used to calculate the average number of days cash is collected from credit customers.
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The receivable turnover ratio is a comparison of the allowance
account to receivables that measures the...
Which of the following is true regarding the Receivables Turnover Ratio? I. It measures the average...
Which of the following is true regarding the Receivables Turnover Ratio? I. It measures the average number of days it takes to collect an account receivable ll. It is calculated as sales divided by accounts receivable. Ill. It measures how many times a business can turn its accounts receivable into cash in a year. IV. It measures how efficiently the company uses accounts receivable to generate earnings. Select one: O a.ll and IV only O b. I, Il and IlII...
Saved The receivables turnover ratio indicates DEL Multiple Choice e H ow efficient the company is...
Saved The receivables turnover ratio indicates DEL Multiple Choice e H ow efficient the company is at managing sales and inventory. The relationship between sales and cost of goods sold. number of times during a year that the average accounts receivables were collected. 0 CA The relationship between cash sales and credit sales < Prev 25 of 30 Next > newcom ecucduUILCUNDU Help Save & Exit Saved uiz At the end of the year, Mark Inc. estimates future bad debts...
QUESTION 8: Receivables turnover, inventory turnover and gross margin would be critical measures for what type...
QUESTION 8: Receivables turnover, inventory turnover and gross margin would be critical measures for what type of firm? an electric utility compaany a service firm a merchandising firm an architectural firm QUESTION 10: The higher the equity multiplier, the better. True False QUESTION 11: The ratio that indicates the firm’s ability to use assets to generate operating profit is the basic earning power equity multiplier return on equity days sales outstanding
On January 1, 2018, the general ledger of 3D Family Fireworks includes the following account balances:...
On January 1, 2018, the general ledger of 3D Family Fireworks
includes the following account balances:
Accounts Debit Credit
Cash
$
27,900
Accounts Receivable
15,600
Allowance for Uncollectible Accounts
$
4,800
Supplies
4,500
Notes Receivable (6%, due in 2 years)
24,000
Land
80,900
Accounts Payable
9,700
Common Stock
104,000
Retained Earnings
34,400
Totals 152900 152900
During January 2018, the following transactions occur:
January
2
Provide services to customers for cash, $55,100.
January
6
Provide services to customers on account, $92,400....
Blimp Company uses the allowance method to account for uncollectible receivables. At the beginning of the...
Blimp Company uses the allowance method to account for uncollectible receivables. At the beginning of the year, Allowance for Bad Debts had a credit balance of $ 1 comma 300. During the year Blimp wrote off uncollectible receivables of $ 1 comma 800. Blimp recorded Bad Debts Expense of $ 3 comma 000. Blimp's year-end balance in Allowance for Bad Debts is $ 2 comma 500. Blimp's ending balance of Accounts Receivable is $ 20 comma 800. Compute the net...
#4 After noting that its receivables turnover ratio had declined, Imperative Company decided for the first...
#4 After noting that its receivables turnover ratio had declined, Imperative Company decided for the first time in the company's history to sell $580,000 of receivables to a factoring company. The factor charges a factoring fee of 4 percent of the receivables sold. 1. How much cash does Imperative receive on the sale? 2. Calculate the factoring fee. 3. How is the factoring fee reported by Imperative Company? Other expense Allowance for Doubtful Accounts Cost of good solds Bad debts...
Beginning accounts receivable 164,000 Beginning allowance for doubtful accounts 5,400 Sales 2,000,000 Collections on account 1,720,000...
Beginning accounts receivable 164,000 Beginning allowance for doubtful accounts 5,400 Sales 2,000,000 Collections on account 1,720,000 Accounts written off 11,800 Collections of accounts previously written off 1,100 Current balance of bad debt expense 0 Uncollectible accounts as a percentage of receivables 4.00% Using the balance sheet approach, what is the net realizable value of accounts receivable? EB A/R (EB Allowance for doubtful accounts) - calculated as EB A/R times the "Uncollectible Accounts as a Percentage of A/R" Net Realizable Value...
Shipit Corporation reported the following rounded amounts (in millions): Accounts Receivable Allowance for Doubtful Accounts Accounts...
Shipit Corporation reported the following rounded amounts (in millions): Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance Net Sales (assume all on credit) 2016 $ 5,535 (355) $ 5,180 $43,500 2015 $ 5,240 (360) $ 4,880 $42,000 Required: 1. Determine the receivables turnover ratio and days to collect for 2016. (Use 365 days in a year. Do not round Intermediate calculations. Round your final answers to 1 decimal place.) times Receivables Turnover Ratio Days to Collect days...
On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances:...
On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances: Accounts Debit Credit $ 25,900 Cash Accounts Receivable Allowance for Uncollectible Accounts Supplies Notes Receivable (5%, due in 2 years) 14,600 2,800 3,500 30,000 78,000 Land Accounts Payable 9,800 106,000 33,400 Common Stock Retained Earnings $152,000 $152,000 Totals During January 2021, the following transactions occur: 2 Provide services to customers for cash, $45,100. 6 Provide services to customers on account, $82,400. January January January...
What is the Year 2 receivables turnover ratio for Year 2
Consider the following information:Year 2Year 1Accounts receivable$88,000$80,000Merchandise inventory66,00080,000Net sales408,000380,000Cost of goods sold248,000228,000What is the Year 2 receivables turnover ratio for Year 2? (Round your answer to 2 decimal places.) Receivables turnover ratio = _______
Which of the following is true regarding the Receivables Turnover Ratio? I. It measures the average number of days it takes to collect an account receivable ll. It is calculated as sales divided by accounts receivable. Ill. It measures how many times a business can turn its accounts receivable into cash in a year. IV. It measures how efficiently the company uses accounts receivable to generate earnings. Select one: O a.ll and IV only O b. I, Il and IlII...
Saved The receivables turnover ratio indicates DEL Multiple Choice e H ow efficient the company is at managing sales and inventory. The relationship between sales and cost of goods sold. number of times during a year that the average accounts receivables were collected. 0 CA The relationship between cash sales and credit sales < Prev 25 of 30 Next > newcom ecucduUILCUNDU Help Save & Exit Saved uiz At the end of the year, Mark Inc. estimates future bad debts...
On January 1, 2018, the general ledger of 3D Family Fireworks
includes the following account balances:
Accounts Debit Credit
Cash
$
27,900
Accounts Receivable
15,600
Allowance for Uncollectible Accounts
$
4,800
Supplies
4,500
Notes Receivable (6%, due in 2 years)
24,000
Land
80,900
Accounts Payable
9,700
Common Stock
104,000
Retained Earnings
34,400
Totals 152900 152900
During January 2018, the following transactions occur:
January
2
Provide services to customers for cash, $55,100.
January
6
Provide services to customers on account, $92,400....
Shipit Corporation reported the following rounded amounts (in millions): Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance Net Sales (assume all on credit) 2016 $ 5,535 (355) $ 5,180 $43,500 2015 $ 5,240 (360) $ 4,880 $42,000 Required: 1. Determine the receivables turnover ratio and days to collect for 2016. (Use 365 days in a year. Do not round Intermediate calculations. Round your final answers to 1 decimal place.) times Receivables Turnover Ratio Days to Collect days...
On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances: Accounts Debit Credit $ 25,900 Cash Accounts Receivable Allowance for Uncollectible Accounts Supplies Notes Receivable (5%, due in 2 years) 14,600 2,800 3,500 30,000 78,000 Land Accounts Payable 9,800 106,000 33,400 Common Stock Retained Earnings $152,000 $152,000 Totals During January 2021, the following transactions occur: 2 Provide services to customers for cash, $45,100. 6 Provide services to customers on account, $82,400. January January January...
Consider the following information:Year 2Year 1Accounts receivable$88,000$80,000Merchandise inventory66,00080,000Net sales408,000380,000Cost of goods sold248,000228,000What is the Year 2 receivables turnover ratio for Year 2? (Round your answer to 2 decimal places.) Receivables turnover ratio = _______
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