Accounts Receivable, Finance And Accounting

Question: Where should Sales Discount be recorded?
A
Income statement credit column

B
Balance sheet debit column

C
Income statement debit column

D
Balance sheet credit column

Note: answer not sure
1. Report
Question: Accounts Receivable is recorded as _________
A
an asset

B
a liability

C
a contingent liability

D
None of these

Note: answer not sure
1. Report
Question: Why is "day's sales in Accounts Receivable" important to calculate?
A
It tells you the total day's sales that were made

B
It is required by the SEC for all public companies

C
It indicates the company's overall financial health

D
It makes comparison with prior results possible to see improvements or non improvements, and lets a company know how long people are taking to pay on average

Note: answer not sure
1. Report
Question: Which of the following statements regarding the calculation of 'day's sales' in receivables is incorrect?
A
Allowance for doubtful accounts is generally not considered in the formula for 'day's sales'

B
This formula must be applied in two steps.

C
The number of 'day's sales' in Accounts Receivable is always 365.

D
Net sales are not used in the calculation of 'day's sales' in Accounts Receivable.

Note: answer not sure
1. Report

Question: Where should Sales Discount be recorded?