Canadian Accounting Classifies Accounts Receivable as "Current", "Late", and "Not

question 104

Multiple Choice

Canadian Accounting classifies accounts receivable as "current", "late", and "not collectible". Industry figures show that 60% of A/R are current, 30% are late, and 10% are uncollectible. A law firm in Markham Ontario has 500 accounts receivable: 320 are current, 120 are late and 60 are not collectible. Are these numbers in agreement with the industry distribution?

• A) The Markham firm's data reflect the national average, when tested at the 0.10 level of significance
• B) The Markham firm's data reflect the national average, when tested at the 0.05 level of significance
• C) The Markham firm's data reflect the national average, when tested at the 0.01 level of significance
• D) The Markham firm's data do not reflect the national average, when tested above a 0.01 level of significance
• E) A, B and C are true

Grasp the significance of building and maintaining strong customer relationships in sales.

Learn the methodologies for prospecting and identifying qualified potential customers.

Understand effective objection handling techniques in the personal selling process.

Identify the criteria for determining the effectiveness of personal selling in various purchase situations.

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Definitions:

Accrual Entry

An accounting method that records revenues and expenses when they are incurred, regardless of when cash is exchanged.

Accounting Accruals

Accounting method where revenue and expenses are recorded when they are earned or incurred, not necessarily when cash is received or paid.

Unpaid Payroll

The total sum of all wages, salaries, bonuses, and deductions owed to employees that have not yet been paid.

Depreciation

The accounting process of allocating the cost of a tangible asset over its useful life, reflecting decrease in value over time.