Question :
81. The days’ sales uncollected ratio used to:
A. Measure how many days : 1256887
81. The days’ sales uncollected ratio is used to:
A. Measure how many days of sales remain until the end of the year.
B. Determine the number of days that have passed without collecting on accounts receivable.
C. Identify the likelihood of collecting sales on account.
D. Estimate how much time is likely to pass before the amount of accounts receivable is collected.
E. Measure the amount of layaway sales for a period.
82. The number of days’ sales uncollected is calculated by:
A. Dividing accounts receivable by net sales.
B. Dividing accounts receivable by net sales and then multiplying by 365.
C. Dividing net sales by accounts receivable.
D. Dividing net sales by accounts receivable and then multiplying by 365.
E. Multiplying net sales by accounts receivable and dividing the result by 365.
83. A company had net sales of $31,500 and ending accounts receivable of $2,700 for the current period. Its days’ sales uncollected is equal to:
A. 11.7 days
B. 23.3 days
C. 31.3 days
D. 42.5 days
E. 46.6 days
84. Mattel had net sales of $4,235 million and ending accounts receivable of $775 million.Days’ sales uncollected is equal to:
A. 298 days
B. 66.8 days
C. 19.4 days
D. 81.8 days
E. 65.2 days
85. Which of the following statements is true given the data below?
Company A
Company B
Sales
$250,000
$400,000
Ending Accounts Receivable
$55,000
$55,000
A. Both companies have the same degree of liquidity with regard to their accounts receivable.
B. Company A is likely to collect accounts receivable more quickly than Company B.
C. Company B is likely to collect accounts receivable more quickly than Company A.
D. Company A and Company B will likely collect accounts receivable at the same time.
E. It is impossible to estimate how much time it will take for these companies to collect their receivables based on the given information.
86. In year 1 a company had net sales of $50,000 and ending accounts receivable of $2,000. In year 2 this company had net sales of $80,000 and ending accounts receivable of $4,000. Use days’ sales uncollected to determine which of the following statements is true:.
A. Days’ sales uncollected in year 1 is 14.6 days and in year 2 is 18.25 days. This measure indicates that the company’s liquidity is declining.
B. Days’ sales uncollected in year 1 is 14.6 days and in year 2 is 18.25 days. This measure indicates that the company’s liquidity is improving.
C. Days’ sales uncollected in year 1 is 25 days and in year 2 is 20 days. This measure indicates that the company’s liquidity is declining.
D. Days’ sales uncollected in year 1 is 25 days and in year 2 is 20 days. This measure indicates that the company’s liquidity is improving.
E. Days’ sales uncollected in year 1 is .04 days and in year 2 is .05 days. This measure indicates that the company’s liquidity is improving.
87. An income statement account that is used to record cash overages and cash shortages arising from omitted petty cash receipts and from errors in making change is called the:
A. Cash Lost account.
B. Bank Reconciliation account.
C. Petty Cash account.
D. Cash Over and Short account.
E. Cash Receivable account.
88. A set of procedures and approvals that is designed to control cash disbursements and the acceptance of obligations is referred to as a(n):
A. Internal cash system
B. Petty cash system
C. Cash disbursement system
D. Voucher system
E. Cash control system
89. The Cash Over and Short account:
A. Is used to record a credit balance in the cash account.
B. Is an income statement account used for recording the income effects of cash overages and cash shortages from errors in making change and from missing petty cash receipts.
C. Is not necessary in a computerized accounting system.
D. Can never have a debit balance.
E. Can never have a credit balance.
90. A voucher is an internal file that:
A. Is prepared after an invoice is received.
B. Is used as a substitute for an invoice.
C. Is used to accumulate information needed to control cash disbursements and to ensure that transactions are properly recorded.
D. Takes the place of a bank check.
E. Is prepared before the company orders goods.
