If Customers Pay Their Invoices on Average in 30 Days

question 33

Multiple Choice

If customers pay their invoices on average in 30 days and the company is projecting a 12% increase in its sales revenue next year from its current level of $5,657,500, how much more will it be carrying in accounts receivable next year?

• A) $3,100
• B) $94,292
• C) $55,800
• D) $93,000
• E) $1,131,500

Transition between equity method and fair value method when applicable.

Evaluate and audit the appropriateness of using the equity method for investment accounting.

Understand the differences in equity method accounting under International Accounting Standards and FASB ASC.

Understand the primary objective of the fair value method of accounting for an investment.

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