Answered: A decrease in accounts recelvable…

A decrease in accounts recelvable turnover ratio Is Indicative of an Increase In sales revenue. O a decline in cost of good sold O slower selling Inventory. O an Increase in accounts recelvable

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 11Q

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A decrease in accounts recelvable turnover ratio Is Indicative of
an Increase In sales revenue.
O a decline in cost of good sold
O slower selling Inventory.
O an Increase in accounts recelvable

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An increase in the inventory turnover rate is indicative of: Multiple Choice a decrease in the cost of goods sold. a decrease in the supply of inventory. an increase in the supply of inventory. an increase in sales revenue.
Sales returns and allowances increasing by a greater amount than sales revenues can cause confusion when calculating an increase in sales revenue and net income. an increase in net income. a decrease in sales revenue. an increase in sales revenue and retained earnings.
In a period of rising prices,a. cost of goods sold under LIFO will be less than under FIFO.b. gross profit under FIFO will be higher than under LIFO.c. LIFO inventory will be greater than FIFO inventory.d. net income under LIFO will be higher than under FIFO.
Under the LIFO cost flow assumption during a period ofinflation, which of the following is false? A. Cost of goods sold will be lower than under FIFO B. Gross margin will be lower than under FIFO C. Income tax expense will be lower than under FIFO D. Ending inventory will be lower than under FIFO
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14. Which of the following is most likely to be a symptom of overtrading? A Static levels of inventory turnover B Rapid increase in profits C Increase in the level of the current ratio D Rapid increase in sales
1.Which of the following may not result to the amount of cost of sales? a.Net purchases less net increase in inventory b.Net decrease in inventory plus net purchases c.Total goods available for sale less beginning inventory d.Total goods available for sale less ending inventory
Gross profit is: The amount left over after cost of goods sold is subtracted from net sales. A.Net sales less operating expenses. B.Sales less sales discount. C.less sales discounts. D.Net sales less selling expenses
Which of the statements below is TRUE? a. Receivables turnover is accounts receivable divided by sales. b. Inventory turnover is cost of goods sold divided by accounts receivables. c. Total asset turnover is profits divided by total assets. d. A higher inventory turnover ratio signifies that inventory is moving faster.
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Sigma Corporation experiences a decrease in sales and cost of goods sold, an increase in accounts receivable, and no change in inventory. If all else is held constant, what is the total effect of these changes on the inventory ratio? A)Increased B)Decreased C)Undetermined D)No answer text provided.