1. What is the definition of accounts receivable in financial accounting, and why is it important for businesses?

2. What are the main forms of accounts receivable in financial accounting, and how do they differ in terms of payment terms and risk?

3. What are some common journal entries for accounts receivable transactions, and how do these entries impact a company's

financial statements?

4. What are the potential risks associated with accounts receivable, and how can businesses mitigate these risks to ensure

timely payments from their customers?

5. A company had net credit sales of $1,200,000 during the year. The average accounts receivable balance was $150,000. Calculate the accounts receivables turnover ratio and the average collection period.

6. ABC Company has the following information:

Total Assets: $2,500,000

Total Liabilities: $800,000

Shareholder's Equity: ?

Calculate the shareholder's equity and the debt-to-equity ratio.