Which of the following is a technique for boosting revenues? (a) Follow the 35-day month practice in
Question:
Which of the following is a technique for boosting revenues?
(a) Follow the "35-day month practice" in which the books are kept open longer than the month end in ceder to record est sales
(b) Record transactions at the net amount.
(c) Delay shipment of goods
(d) Increase the allowance for doubtful accounts & Why is it important to analyze the relationship among sales, accounts receivable, and the allowance for doubtful acts?
(a) Comparing the three accounts' growth rates is the only way to deter mine if the firm is using vendor financing
(b) The allowance for doubtful accounts is a reserve account that can be weed to manipulate the earnings number.
(c) Price and volume changes will cause the relationship among the three accounts to be volatile.
(d) It is important to determine if the three accounts are changing with the inflation rate
Step by Step Answer:
Understanding Financial Statements
ISBN: 9780131878563
8th Edition
Authors: Lyn M Fraser, Aileen Ormiston