The Following Information Was Presented in the Balance Sheet of Acworth

question 39

Multiple Choice

The following information was presented in the balance sheet of Acworth Pools as of December 31,2012: Trade accounts receivable, net of allowance for doubtful
accounts of $\$ 200,000$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\$ 1,700,000$ Select the incorrect statement from the following.

• A)The company expects to actually collect $1,700,000 of its receivables.
• B)The balance in the Accounts Receivable account in the company's general ledger is $1,700,000.
• C)The net realizable value of the company's receivables is $1,700,000.
• D)The company expects uncollectibles to total $200,000.

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Definitions:

Sample Size

The number of observations or elements selected from a population to be included in a statistical sample.

Reduce β

In statistics, it generally refers to decreasing the coefficient (β) in a regression model to address overfitting or multicollinearity.

Power of the Test

The probability of correctly rejecting a false null hypothesis in a statistical test.

Test Statistic

A value calculated from sample data during a hypothesis test, used to decide whether to reject the null hypothesis.