Which of the following statements is false?

a.All else equal, the higher the accounts receivable turnover, the better.

b.All else equal, the lower the days to collect accounts receivable, the better.

c.The accounts receivable turnover can vary significantly among industries.

d. One can use accounts receivable turnover to calculate the days to collect accounts receivable.

e. As a company grows, management expects and wants the accounts receivable turnover to decrease.

2.Which of the following statements appropriately describes attributes of perpetual and

periodic inventory systems?

a.Historically, a perpetual inventory system is less costly to maintain then a periodic one.

b. Inventory shrinkage is just as easily determined under both the perpetual and periodic inventory

system.

c.The perpetual inventory system computes cost of sales as a residual amount.

d. If a company has a December 31 year end, and operated under the periodic inventory system, it is

possible that the balance in the inventory account on December 29 would remain unchanged from its

January 1 balance, even though numerous sales have occurred during the year.

e.Cost of sales can be determined at any time by both the perpetual and periodic inventory system

without the need of a physical inventory count.