When it cceptable to use the direct w olf method to account for uncollectible O A when the company has historical data in regards to collectible cours B. when the spected bad debts are rificant C. when the company uses the percentage of sales method D. when the expected bad debts not writicart count? QUESTION 28 The most common threshold for account recevable groupings is O A 160-180 days. o 8.30-60 days C 0-5 days OD. 120 days QUESTION 29 No allowance for doubt count is used for the O A percentage of credit sales method O direction method OC.aging of counts receivable method O Dallowance method QUESTION 30 Foamy Suds Lid. had a freswarouse and was trying costos out of the very low For is normal Inventory not damagediere was 18.000 What w e cost of the O A 3110.000 .374 000 C 5100 000 O 05124.000 years hade medier 35000 3500 .000 QUESTION 31 o When a periodic inventory system is used A tiny data is of most importance v ery inventory transactionsrfected in re inventory account cost of goods sold is always known inventory shrinkage impossible to calculate QUESTION 23 Which of the following statements is incorrect? O A If the current ratio is too Ngh the company may have too much cash on hand B. If the current ratio is too high the company may have an insignificant amount of receivables C. the current is too on the company may not be managing itsasses effectively D. If the current ratio is too high the company may have overly high levels of inventory QUESTION 24 When the bad debt estimate is based on the assumption that the amount of bad debt is a function of the total sales made on credit this method is known as A aging of accounts receivable method B. the percentage of credit sales method. OC the direct wit method D. the percentage receivables method QUESTION 25 The effectiveness of internal control is limited by A fraud 3. cash on hand C collusion all of the above E none of the above QUESTION 26 Policies and procedures that are established to protect and manage a company's assets are known as Amanagement controls B emal controls C. a record-keeping system