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Chapter 2
Accounting for Receivables
AS-16 (
6
)
What internal controls are important for accounts receivable? Is there any one control that is
absolutely necessary?
AS-17 (
8
)
What ethical problems are related to accounts receivable? Can they be avoided?
AS-18 (
8
)
Suppose a company is in the middle of preparing its financial statements for the fiscal year,
and finds out that its net income figure falls a little bit short of Wall Street earnings forecasts.
How would management’s desire to beat analysts’ forecasts potentially influence the
estimated amount of bad debt expense?
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