Reference no: EM132774178

Problem 1: The account receivable turnover measures:

Option 1: How long it takes to sell accounts receivable to a factor.
Option 2: How often, on average, receivables are received and collected during the period.
Option 3: The relation of cash sales to credit sales.
Option 4: How long it takes to sell merchandise inventory.
Option 5: All of the options are correct.

Problem 2: The matching principle, as applied to bad debts, requires.:

Option 1: The use of the direct write-off method for bad debts.
Option 2: That expenses be ignored if their effect on the financial statements is unimportant to users' business decisions.
Option 3: That bad debts not be written off.
Option 4: The use of the allowance method of accounting for bad debts.
Option 5: That bad debts be disclosed in the financial statements.