14. Anthony’s Sales provides the following information: Net credit sales: $800,0
ID: 2430873 • Letter: 1
Question
14. Anthony’s Sales provides the following information: Net credit sales: $800,000 Beginning net accounts receivable: $37,000 Ending net accounts receivable: $22,000 Calculate Anthony’s accounts receivable turnover ratio. (Round to the nearest whole number.) A) 20 times B) 26 times C) 27 times D) 22 times What does this ratio tell us?
15. Which of the following statements is incorrect? A) Depreciation is recorded on all plant assets. B) Plant assets not currently being used in business operations are long-term investments. C) Plant assets are long-lived tangible assets used in the operations of a business. D) The life cycle of a plant asset includes: acquisition, usage, and disposal.
Explanation / Answer
Q14. Answer is C. 27 times Explanation: Net credit sales 800000 Average Accounts receivable 29500 (37000+22000)/2 Account receivable Turnover ratio 27.11 times Accounts receivable turnover ratio states that the number of times the cash is collected from accounts receivable during the year. Q15. Answer is A. Depreciation is recorded on all plant assets.
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