an account becomes bad and is written off.
a sale is made.
4. Which one of the following is not a principle of sound accounts receivable
management?
Determine a payment period.
Determine to whom to extend credit.
Delay cash receipts from receivables if necessary.
Monitor collections.
5. The accounts receivable turnover is used to analyze
profitability.
long-term solvency.
liquidity.
risk.
6. The following information is provided for Sunland Company and Marigold Corp.:
What is Marigold’s return on assets (rounded) for 2017?
3%
2%
3%