Valdez Company Reported Sales of $343,000;beginning Net Accounts Receivable of $89,000

question 103

Multiple Choice

Valdez Company reported sales of $343,000;beginning net Accounts Receivable of $89,000 and ending net Accounts Receivable of $111,000.Valdez Company's receivable collection period (rounded to the nearest day) is:

• A)106.
• B)79.
• C)118.
• D)95.

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Definitions:

Materiality

A principle that dictates that all significant information that could influence the decision-making process of users of financial statements should be disclosed.

Fair Value

The estimated market value of an asset or liability, based on current prices in an open market.

Financial Statements

Formal records that outline the financial activities and condition of a business, including balance sheets, income statements, and cash flow statements.