Canadian Accounting Classifies Accounts Receivable as "Current", "Late", and "Not

question 80

Multiple Choice

Canadian Accounting classifies accounts receivable as "current", "late", and "not collectible". Industry figures show that 60% of A/R are current, 30% are late, and 10% are uncollectible. A law firm in Markham Ontario has 500 accounts receivable: 310 are current, 125 are late and 65 are not collectible. Are these numbers in agreement with the industry distribution? Using the data from this Mega stat printout, you determine:

• A) the Markham firm's data reflect the national average, when tested at the 0.10 level of significance.
• B) the Markham firm's data reflect the national average, when tested at the 0.05 level of significance.
• C) the Markham firm's data reflect the national average, when tested at the 0.01 level of significance.
• D) the Markham firm's data do not reflect the national average, when tested above a 0.01 level of significance.

Identify appropriate activity indexes for budgeting specific positions or departments within an entity.

Analyze the impact of budget assumptions on cash flow, including expected cash receipts and disbursements.

Recognize the role and benefits of budgeting within organizations, including both profit and not-for-profit entities.

Formulate sales, production, and direct materials budgets based on sales forecasts and company policies.

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Definitions:

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