If Boyd Corporation Has Sales of $2 Million Per Year

question 45

Multiple Choice

If Boyd Corporation has sales of $2 million per year (all credit) and days sales outstanding of 35 days,what is its average amount of accounts receivable outstanding (assume a 360 day year) ?

• A) $194,444
• B) $57,143
• C) $5,556
• D) $97,222
• E) $285,714

Understand the accounting treatments for dividends, including cash dividends and their impact on retained earnings.

Analyze the significance of financial ratios, such as dividend yield and price-earnings ratio, in evaluating company performance.

Recognize the importance and methodology of adjustments for accounting errors and their implications on financial statements.

Understand the principles behind statutory and contractual restrictions and their reporting on financial documents.

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Definitions:

Proposition

A comment that denotes a judgment or viewpoint.

Consequent

In logic, this refers to the outcome in a conditional statement, which follows from its condition (if-then statement).

Proposition

A proposition is a statement or assertion that expresses a judgment or opinion.

Syllogism

A form of deductive reasoning that arrives at a conclusion based on two premises, where each shares a common term.