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ACC 556 WEEK 5 CHAPTER 8
- Exam (elaborations) • 5 pages • 2017
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Question 1 
The accounts receivable turnover
Is computed by dividing net credit sales for the accounting period by the cash realizable value of accounts receivable on the last day of the accounting period.
Can be used to compute the average collection period.
Is a method of evaluating the solvency of net accounts receivable.
Is only important to internal users of accounting information.
Question 2 
Which one of the following is not a principle of sound accounts receivable management?
Determine t...
Too much month left at the end of the money?
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