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1. Which independent accounting firm expressed an opinion as to whether GoPro's financial statements present fairly, in all material respects, the company's financial position, operating results, and cash flows during its most recent reporting period?

	a.	Ernst & Young
	b.	Deloitte and Touche
	c.	PricewaterhouseCoopers
	d.	KPMG

2. What type of opinion did the independent auditors issue on the company's financial statements and notes to the financial statements?

	a.	Unqualified
	b.	Qualified
	c.	Adverse
	d.	Disclaimer

3. GoPro's cash and cash equivalents:

	a.	beginning balance at January 1, 2017 was $0.
	b.	beginning balance at 12/31/17 was $202,504 (in thousands).
	c.	decreased $10,390 (in thousands) from beginning of 2017 to the start of 2018.
	d.	increased $10,390 (in thousands) from the start of 2017 to the end of 2017.

4. Which of GoPro's balance sheet accounts is increased for sales made on account?

	a.	Cash.
	b.	Accounts payable.
	c.	Revenue.
	d.	Accounts receivable.

5. At the most recent balance sheet date, GoPro did not expect to collect ______________ in sales on account the company made to its customers.

	a.	$112,935 (in thousands)
	b.	$0.8 million
	c.	$112,135 (in thousands)
	d.	$51,618 (in thousands)

6. At the most recent balance sheet date, the amount of cash that Go Pro estimated it will collect from credit sales to customers was (in thousands):

	a.	$113,735.
	b.	$164,553.
	c.	$1,179,741.
	d.	$112,935.

7. When Go Pro collects an accounts receivable from a customer:

	a.	Revenue on the income statement is increased and accounts receivable on the balance sheet is increased.
	b.	Revenue on the income statement is increased and accounts receivable on the balance sheet is decreased.
	c.	Total assets are decreased on the balance sheet and net income on the income statement is increased.
	d.	Total assets are unchanged on the balance sheet and the income statement is not effected.

8. Go Pro's total assets remain unchanged when the company write-offs an uncollectible accounts receivable from a customer.

True

False

9. Cash flows from ____________ activities are _______________ when GoPro collects an accounts receivable from a customer.

	a.	operating, decreased
	b.	investing, decreased
	c.	financing, increased
	d.	operating, increased

10. Use the following formulas to calculate the company's average number of days to collect accounts receivable for the last two balance sheet dates.

Part 1: Calculate accounts receivable turnover ratio = Revenue / Accounts receivable, net

Part 2: Average number of days to collect accounts receivable = 365 days / accounts receivable turnover ratio (from part 1 above)

Now answer the question below.

Go Pro collected its accounts receivable:

	a.	Management improved its collection of receivables during this time period.
	b.	Management did not improve its collection of receivables during this time period.
	c.	There was no change in management's collection of receivables during this time period.
	d.	Management's collection of accounts receivable during this time period cannot be determined from the information provided.

https://blackboard.utdl.edu/bbcswebdav/pid-6401197-dt-content-rid-54425419_1/courses/BUAD2040901201840/Chapters%206%20and%207%20Company%20Notes%201819.pdf

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