The accounts receivable for Note Corporation was $240,000 at the beginning of the year and $260,000 at the end of the year. If the accounts receivable turnover for the year was 8 and 20% of the total sales were cash sales, the total sales for the year were:
A. $2,500,000
B. $2,600,000
C. $2,000,000
D. $2,400,000
Answer: A
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Measurement of the economic effects on an entity involves each of the following except
a. Quantification of effects b. Identification of the attribute to be measured c. Selection of an appropriate unit of measure d. Recording the economic effects in the financial statements
Which one of the following is not an accurate description of Allowance for Doubtful Accounts?
a. Contra account b. Balance sheet account c. Income statement account d. Current asset account
The debt ratio helps to assess the risk a company has of failing to pay its debts and is helpful to both its owners and creditors.
Answer the following statement true (T) or false (F)
In an effort to help one of her corporate customers avoid paying a large amount for
income tax, Jenny an accountant helped the company to prepare a fraudulent tax return. The fraud was discovered by Revenue Canada. Which of the following statements is TRUE? A) Jenny may be held liable for up to 75% of the gross amount of the fraud B) Jenny may be held liable for up to 100% of the gross amount of the fraud C) Jenny may be held liable for up to 25% of the gross amount of the fraud D) Jenny may be held liable for up to 50% of the gross amount of the fraud. E) Jenny may be held liable for up to 40% of the gross amount of the fraud