Q1. Which of the following is FALSE?

A. An accounts receivable aging is a useful tool for managing cash flow.

B. An accounts receivable aging reveals only past due amounts

C. The grand total amount from an accounts receivable aging is equivalent to the amount reported on the balance sheet (excluding any allowance for bad debts)

D. Two of the above are FALSE

E. None of the above is FALSE

Q2. Western Refining, Inc. has sales of $9,787,183,560 for the year ending December 31, 2019. If days sales outstanding are thirteen, then accounts receivable at December 31, 2019 must be approximately

A. $382,612,152

B. $40,125,126

C. $38,828,416

D. $35,342,607

E. None of the above.

Q3. The result of the days sales outstanding is essentially the firms average collection period.

True / False

Q4. Interest only accrues with the passage time.

True/ False

Q5. Interest revenue for a 9-month, 12% note receivable originated on May 1, 2019 in the amount of $700,000 is $84,000 for the twelve months ending December 31, 2019.

True / False