The Following Account Balances Are Taken from the Records of the Odessa

question 159

Essay

The following account balances are taken from the records of the Odessa Industries:
Odessa extends credit terms requiring full payment in 45 days, with no discount for early payment. REQUIRED:
1. Compute Odessa's accounts receivable turnover ratio for 2016 and 2015.
2. Compute the number of days' sales in receivables for 2016 and 2015. Assume 360 days in a year.
3. Comment on the efficiency of Odessa's collection efforts over the two­year period.

Highlight the significance of the sender's credibility in persuasive communication.

Understand the functioning and purpose of an audit in relation to financial statements.

Define assets and their impact on the balance sheet.

Understand the structure and purpose of the balance sheet and its major components.