AICPA CPA-Business Exam - Topic 1 Question 28 Discussion

Actual exam question for AICPA's CPA-Business exam

Question #: 28
Topic #: 1

A firm averages $4,000 in sales per day and is paid, on an average, within 30 days of the sale. After they receive their invoice, 55 percent of the customers pay by check, while the remaining 45 percent pay by credit card. Approximately how much would the company show in accounts receivable on its balance sheet on any given date?

A$120,000

B$48,000

C$54,000

D$21,600

Show Suggested Answer

Suggested Answer: A

Choice 'a' is correct. $120,000 accounts receivable approximation. There is no effect on total A/R based on how (i.e., check or credit card) the customers actually pay their A/R.

by Haydee at May 07, 2022, 07:56 PM

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Man

4 months ago

I thought it would be less, but yeah, $120,000 checks out!

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Benton

4 months ago

I think $120,000 makes sense, but what about late payments?

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Andra

4 months ago

Wait, how do we know all customers pay on time? Seems off.

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Daniel

4 months ago

Totally agree, it's definitely $120,000!

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Cyril

5 months ago

The daily sales are $4,000, so in 30 days that's $120,000 in receivables.

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Altha

5 months ago

Okay, I've got this. The engineer wants to use the dark fiber links as a backup path, so a Sham link is the way to go. That will allow the dark fiber to be used only when the MPLS core is unavailable. Simple solution once you understand the OSPF concepts.

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Vivan

5 months ago

Hmm, this is an interesting question. I think the key is to consider the Scrum framework and how it defines sprints. Sprints are typically 1-4 weeks long, so I'd say the best answer is B - a fixed amount of weeks, excluding holidays.

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Barney

5 months ago

This seems like a straightforward question about maintenance programs in process plants. I'll carefully read through the options and think about which one best fits the description of detecting and evaluating deterioration.

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Curt

5 months ago

This question seems straightforward, but I want to make sure I understand the concept of materiality limits and when they don't apply. I'll need to review that section carefully.

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