Reference no: EM132789947

Problem 1: Which one of the following statements is true?

a.When a company uses a subsidiary ledger, the balance in the control account, Accounts Receivable, shows only the amount the company expects to collect from the accounts receivable, net of any expected uncollectible accounts.

b.The balance in the control account, Accounts Receivable, should be equal to the sum of the balances in the subsidiary ledger for accounts receivable.

c.A subsidiary ledger takes the place of the control account for some companies.

d.An accounts receivable subsidiary ledger represents amounts due to vendors and suppliers.

Problem 2: Where can the amounts needed to compute the accounts receivable turnover ratio be found?

a.The balance sheet

b.The statement of cash flows

c.The income statement

d.Both the income statement and balance sheet