The accountant at Intellectual Property Inc. gathered the following selected accounting information:
Required:
a. Compute the acid-test ratio for 2013 and 2014.
b. Compute the days' sales in average receivables for 2013 and 2014.
Net accounts receivable on December 31, 2012 was $27,000.

Question

The accountant at Intellectual Property Inc. gathered the following selected accounting information:
  Required:
a. Compute the acid-test ratio for 2013 and 2014.
b. Compute the days' sales in average receivables for 2013 and 2014.
Net accounts receivable on December 31, 2012 was $27,000.

Quizplus · Accepted Answer

The Answer of The accountant at Intellectual Property Inc. gathered the following selected accounting information:
  Required:
a. Compute the acid-test ratio for 2013 and 2014.
b. Compute the days' sales in average receivables for 2013 and 2014.
Net accounts receivable on December 31, 2012 was $27,000.

The Accountant at Intellectual Property Inc