A. Deegan Industries has an accounts receivable turnover rate of 8. Which of the following statements is not true?

1.Deegan's accounts receivable are more liquid than those of a business whose accounts receivable turnover rate is 5.2.Deegan waits approximately 46 days to make collections of its credit sales. (Use 365 days in a year.)3.Deegan writes off accounts receivable as uncollectible if they are over 45 days old.4.Deegan's net credit sales are about eight times the amount of its average accounts receivable.

B. Which of the following activities affects net income, but has no immediate impact upon cash flows? 1.Collection of an account receivable. 2.Making the end-of-period adjustment to record estimated uncollectible accounts. 3.Investing excess cash in marketable securities. 4.Write-off of an uncollectible account receivable against the allowance.