With the Proper Changes It Is Believed That Ideko's Credit

question 42

Multiple Choice

With the proper changes it is believed that Ideko's credit policies will allow for an account receivables days of 60.The forecasted accounts receivable for Ideko in 2007 is closest to:

• A)$14,525
• B)$16,970
• C)$22,710
• D)$19,690

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Definitions:

Percentage-Of-Completion Method

An accounting method used to recognize revenue and expenses of long-term contracts as a proportion of the work completed during the period.

Revenue Recognition

The accounting principle that outlines the specific conditions under which revenue is recognized as earned and can be reported on financial statements.

Contract Price

The total agreed upon amount to be paid for goods or services as specified in a contract.

Percentage-Of-Completion Method

is an accounting technique used to recognize revenue and expenses of long-term contracts proportionally as the work is completed.