1. A ratio that is related to the receivables turnover ratio is the

Select one:

inventory turnover ratio.

bad debts ratio.

average collection period.

days sales in inventory ratio.

2. Under the aging of a company's accounts receivable, the uncollectible accounts are estimated to be $10,000. The unadjusted balance for the Allowance for Doubtful Accounts is $1,500 credit.

What is the balance in the Allowance for Doubtful Accounts account after adjustment?

Select one:

$1,500

$7,000

$11,500

$10,000

3. The total interest owing on a $10,000, 4%, 3-month note receivable is

Select one:

$400

$100

$200

$1,200

4. Which of the following statements is false?

Select one:

The balance in the control account must always equal the total of the subsidiary ledger.

When a subsidiary ledger and a control account are used, each journal entry that affects accounts receivable must be posted twice.

A subsidiary ledger is a group of accounts that provides details about a control account in the general ledger.

A subsidiary ledger includes supporting detail to the general ledger.

5. Trade receivables

Select one:

include employee advances.

can be accounts receivable or notes receivable.

do not result from the operations of the business.

occur when two companies trade or exchange notes receivables.