The accountant at Intellectual Property Inc.gathered the following selected accounting information:
Required:
a.Compute the acid-test ratio for 2016 and 2017.
b.Compute the days' sales in average receivables for 2016 and 2017.
Net accounts receivable on December 31,2015 was $27,000.

Question

The accountant at Intellectual Property Inc.gathered the following selected accounting information:
  Required:
a.Compute the acid-test ratio for 2016 and 2017.
b.Compute the days' sales in average receivables for 2016 and 2017.
Net accounts receivable on December 31,2015 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 2016 and 2017.
b.Compute the days' sales in average receivables for 2016 and 2017.
Net accounts receivable on December 31,2015 was $27,000.

The Accountant at Intellectual Property Inc