Use the selected data from Pinecrest Company's financial statements to answer the following question. 2017 2016 Cash $ 22,000 $ 14,000 Accounts receivable 42,000 16,000 Merchandise inventory 22,000 83,000 Prepaid expenses 23,000 18,000 Total current assets $109,000 $131,000 Total current liabilities $ 65,000 $ 72,000 Net credit sales 221,000 326,000 Cost of goods sold 168,000 299,000 Net cash
flow from operating activities 16,000 29,000 Refer to the data for Pinecrest Company. Competitors in Pinecrest Company's industry have an average accounts receivable turnover of 10.8 times. Pinecrest reported accounts receivable at December 31, 2017, of $42,000 and has normal credit terms requiring payment within 30 days. Pinecrest's accounts receivable turnover for 2017 is:
a. probably indicating that the company probably has stricter credit terms and policies than the industry as a whole, which may repel potential buyers.
b. of no value to bankers and other creditors.
c. less efficient in its collection policies in 2017 than the industry as a whole.
d. less than the industry, which means that its customers are paying on their accounts in a more timely manner than are customers reflected by the industry average.
c
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What will be an ideal response?
Dichotomous questions allow the respondent to express their attitudes or opinions without the bias associated with restricting responses to predefined alternatives
Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
Inductive approaches to accounting theory usually attempt to be descriptive.
The following is a random list of the adjusted account balances of Wyoming Company as of the end of the current accounting period:Cash17,400?Accounts Receivable5100?Accounts Payable4100?Service Revenue17,600?Land24,400?Retained Earnings16,600?Operating Expenses11,800?Common Stock20,400?What is the total of the credit account balances that will be shown on the adjusted trial balance?
A. $41,100 B. $57,700 C. $58,700 D. $59,700