What is the purpose of an aging schedule for accounts receivable?
An aging schedule categorizes the various account receivable amounts by age based on how long an account is past due or outstanding. A company uses this for estimating how much of its accounts receivable are expected to default. It is a refined approach because it lists the dollar amounts of receivables based on the period of time each has been outstanding, such as 30, 60, or more days outstanding.
You might also like to view...
Land costing $78,000 was sold for $93,000 cash. The gain on the sale was reported on the income statement as other income. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?
A) $78,000 B) $93,000 C) $108,000 D) $15,000
Resource and capability analysis is designed to
A. ascertain which of a company's resources and capabilities are competitively valuable. B. ascertain to what extent a competitor can sustain a competitive advantage. C. stimulate demand for a product. D. stimulate economic growth for companies within the industry. E. ascertain the internal marketplace of non-distinct divisions of the company.
Rose bought a share of stock for $64.50 that paid a dividend of $.50 and sold nine months later for $64.00. What was her dollar profit or loss and holding period return?
A) $0.50, 0.78% B) -$0.50, -0.78% C) $0.00, 0.00% D) There is no correct solution to this question.
Suppose a surgeon is sued for negligence by a patient for having accidentally botched an operation. The standard that applies to the surgeon is the reasonable person, which means:
a. strict liability b. the care expected of any ordinary person under the circumstances c. proximate cause is established res ipsa loquitur d. none of the other choices; surgeons are exempt from liability e. none of the other choices