An aging of accounts receivable schedule is based on the premise that the longer the period an account remains unpaid, the greater the probability that it will eventually be collected.
· Question 5
A concentration of credit risk is a threat of nonpayment from a single customer or class of customers that could adversely affect the financial health of the company.
· Question 6
Which of the following is not a common way that managers use the balance sheet?
· Question 7
Financing activities include the purchase or sale of long-lived assets or the purchase or sale of investment securities.
· Question 8
Bathlinks Corporation has a debt to assets ratio of 73 %. This tells the user of Bathlinks‘ s financial statements that
· Question 9
Owners of business firms are the only people who need accounting information.
· Question 10
Marvin Services Corporation had the following accounts and balances:
If the balance of the Buildings account was $ 45,000 and the equipment was sold for $ 21,000, what would be the total of stockholders ' equity?
· Question 11