Which of the following mathematical equations is used to compute the payables deferral period (DPO)?000 оPayables deferral period (DPO) = Accounts payable/Daily credit purchasesPayables deferral period (DPO) = Cost of goods sold/Accounts payablesPayables deferral period (DPO) = Daily credit purchases/Accounts payablePayables deferral period (DPO) = Payables turnover 360Payables deferral period (DPO) = Payables turnover/360

Company purchases goods on credit and payment to the suppliers is made later and this period is…

Answered: O Payables deferral period (DPO) =…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter10: Cash Receipts And Cash Payments

Section: Chapter Questions

Problem 1DQ: What is the normal balance for each of the following accounts: (a) Purchases? (b) Sales Discounts?...

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Two bases for estimating uncollectible accounts are: Select one: O A percentage of recelvables and percentage of sales. O B. percentage of current assets and percentage of sales. O C. percentage of recelvables and percentage of total revenue. O D. percentage of assets and percentage of sales.
Options I have for denominator are - average accounts receivable, net average total assets cost of goods sold current assets current liabilities interest expense net sales
Dividing net sales on account by the average amount of net accounts receivable is the calculation for the a.merchandise inventory turnover. b.working capital turnover. c.plant and equipment turnover. d.accounts receivable turnover.
. The operating cycle is equal to which one of the following? A. Inventory period plus the accounts payable period B. Accounts receivable period plus the cash cycle C. Inventory period minus the accounts payable period plus the accounts receivable period D. Accounts receivable period plus the inventory period E. Inventory period plus the cash cycle
Which of the following calculations of receivable turnover is correct? A. Number of days in the year divided by receivable turnover. B. Net sale on account divided by average receivables. C. Cost of goods sold divided by average inventory. D. Net income divided by net sales.
Answer only for question Receivable turnover, total debt ratio, time interest earned ratio and cash coverage ratio
How to calculate the account receivable turnover ratio in a balance Sheet and income statement (explain it with the items on the income statement and balance Sheet eg.inventory, current receivable, current liability..and so on.
The amount reported on the balance sheet for accounts receivable (gross accounts receivable minus the allowance for doubtful accounts) reflects the ONet realizable value. O Dollar amount per the invoice. O Cost of transportation to the buyer. O Gross profit.
a. Compute the following ratios: i. Accounts Receivable Turnover ratio;ii. Accounts Payable Turnover ratio;iii. Average Collection Period;iv. Average Payable Period;v. Quick Ratio;vi. Gross Profit Margin.vii. Net Profit Marginviii. Debt ratiob b. Explain briefly what is factoring?
Credit entry in a nominal amount is
Total receivables will remain unchanged for which of the following?* a. Collection of trade accounts receivable b. Assignment of receivables c. Factoring of receivables d. Notes receivable discounting without recourse
How do you calculate Accounts Receivable (AR) Turnover and the Number of Days' Sales in Receivables? How is the amount of change method Calculated in horizontal financial statement Analysis?

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