Q1. Which of the following is FALSE?
A. An accounts receivable aging is a useful
tool for managing cash flow.
B. An accounts receivable aging reveals
only past due amounts
C. The grand total amount from an accounts
receivable aging is equivalent to the amount reported on the
balance sheet (excluding any allowance for bad debts)
D. Two of the above are FALSE
E. None of the above is FALSE
Q2. Western Refining, Inc. has sales of
$9,787,183,560 for the year ending December 31, 2019. If days
sales outstanding are thirteen, then accounts receivable at
December 31, 2019 must be approximately
A. $382,612,152
B. $40,125,126
C. $38,828,416
D. $35,342,607
E. None of the above.
Q3. The result of the days sales outstanding is
essentially the firm’s average collection period.
True / False
Q4. Interest only accrues with the
passage time.
True/ False
Q5. Interest revenue for a 9-month, 12% note
receivable originated on May 1, 2019 in the amount of $700,000 is
$84,000 for the twelve months ending December 31,
2019.
True / False