AICPA CPA-Business Exam - Topic 1 Question 23 Discussion

Actual exam question for AICPA's CPA-Business exam

Question #: 23
Topic #: 1

Clauson Inc. grants credit terms of 1/15, net 30 and projects gross sales for next year of $2,000,000. The credit manager estimates that 40 percent of their customers pay on the discount date, 40 percent on the net due date, and 20 percent pay 15 days after the net due date. Assuming uniform sales and a 360-day year, what is the projected days sales outstanding (rounded to the nearest whole day)?

A20 days.

B24 days.

C27 days.

D30 days.

Show Suggested Answer

Suggested Answer: C

Choice 'c' is correct. 27 days projected days sales outstanding.

by Shenika at May 07, 2022, 07:25 AM

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Ona

4 months ago

I calculated it and got 27 days.

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Paris

4 months ago

Wait, 30 days seems too high for DSO!

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Deandrea

4 months ago

I think it’s around 24 days, sounds about right!

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Christene

4 months ago

40% pay on discount date, right?

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Janessa

5 months ago

The projected sales are $2,000,000.

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Melissia

5 months ago

Hmm, I'm a bit unsure here. The question mentions that the TAS has been stable and working, so I'm tempted to just run the full test suite as per option C. But I guess it's better to be cautious and start small, just in case.

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Ena

5 months ago

I've got a good strategy for this. I'll start by calculating the value of the combined entity using the given information, then compare that to the answer choices to see which one matches.

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Joanna

5 months ago

Okay, let's see here. The question is asking us to add a custom status code called 'NO_FILES_FOUND'. I'm leaning towards option B, as it seems to be the most direct way to create a new status code.

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Lynelle

5 months ago

Hmm, I'm a bit confused about the difference between single-technology and multi-technology Knowledge Modules. I'll have to review that before answering.

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Kattie

5 months ago

Hmm, I'm a bit unsure about this one. I need to carefully read through the options and think about which one doesn't fit with the advantages mentioned in the question.

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