QUESTION 26 Which of the following associations is correct? O Balance sheet - cost of goods sold O Income statement-owner's equity Taxes - income statement Long-term liabilities - accounts payable QUESTION 27 An effective approach to successful collections includes O 1. an abrupt, in-your-face style of communication once a payment is late 2. waiting to involce and communicate with the customer once a payment problem clearly exists O 3. setting up an automated collection system to generate "Past Due" notices that does not require personal intervention 4 timely, well-communicated payment expectations with well-documented records QUESTION 28 When a firm sells goods or services on credit, the owner needs to remember that for cash budgeting purposes the sale may be immediately posted as if it has been collected the sale should be recorded in the month it was made (she must account for a delay between the sale and the actual collection of the proceeds such a transaction counts as a cash disbursement