Question
1. Taxes receivable is classified as: a.notes receivable. b.trade receivables. c.accounts receivable. d.other receivable. 2. A transaction in which a company sells its receivables and
1. Taxes receivable is classified as:
a.notes receivable.
b.trade receivables.
c.accounts receivable.
d.other receivable.
2. A transaction in which a company sells its receivables and immediately receives cash for operating and other needs is called _____.
a.factoring
b.discounting
c.adjusting
d.assigning
3. Jack Inc. offers a credit term of n/30. This means that the company:
a.offers a 30-day loan to the suppliers.
b.expects to collect receivables every 30 days.
c.pays its creditors within 30 days of the purchase of raw materials.
d.receives money from the customers 30 days after the of sale of the goods.
4. Days' sales in receivables estimates the average number of days it takes to:
a.collect accounts receivables.
b.collect cash sales.
c.convert inventory to sales.
d.convert raw material to inventory.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started