The following company information is available: \[\begin{array} { | l | r | } \hline \text { Average accounts receivable } & \$ 100,000 \\ \hline \text { Average inventories } & 150,000 \\ \hline \text { Average accounts payable } & 140,000 \\ \hline \text { Net sales } & 2,000,000 \\ \hline \text { Cost of goods sold } & 1,400,000 \\ \hline \text { Purchases } & 1,160,000 \\ \hline \end{array}\] What is the company's accounts payable turnover ratio? (Round your answer to one decimal place, X.X.)

A) 20.0 B) 14.3 C) 8.3 D) 10.0 A) 20.0 B) 14.3 C) 8.3 D) 10.0

Exam 9: Short-Term Operating Assets: Cash and Receivables

Darko Inc. made a $60,000 sale on account with terms of 1/15, n/30. If the company uses the gross method, which of the following will be included in the journal entry to record the sale on account?

(Multiple Choice)

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Question 101

Securitization of receivables eliminates the risk of non-collection.

(True/False)

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Question 102

Under the allowance method, the recovery of an account previously written-off ________.

(Multiple Choice)

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Question 103

The following company information is available: Average accounts receivable \ 100,000 Average inventories 150,000 Average accounts payable 140,000 Net sales 2,000,000 Cost of goods sold 1,400,000 Purchases 1,160,000 What is the company's accounts payable turnover ratio? (Round your answer to one decimal place, X.X.)

(Multiple Choice)

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Question 104

The account Allowance for Uncollectible Accounts is classified as a contra-revenue account.

(True/False)

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Question 105

The aging-of-receivable method determines current-period bad debt expense by focusing on balance sheet relationships.

(True/False)

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Question 106

Gant Company factored its receivable with recourse to Rowlin Bank. Gant received cash as a result of this transaction. Assuming the three conditions for a sale are met, this transaction is best described as a ________.

(Multiple Choice)

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Question 107

Frigart Company sold goods for $13,000 with terms 2/10, n/30. How much would Frigart receive if the account were paid within the discount period?

(Multiple Choice)

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Question 108

The net realizable value of accounts receivable is calculated as ________.

(Multiple Choice)

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Question 109

Notes receivable are classified as current or noncurrent on the balance sheet based on the expected collection date.

(True/False)

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Question 110

On August 1, 2016, TTek installed a $560,000 computer system for Skybox.com. TTek agreed to accept a $600,000 nine-month, noninterest-bearing note due on April 30, 2017. TTek prepares financial statements at the end of every calendar year. a. Prepare TTek's journal entry to record the receipt of the note on August 1, 2016. b. Prepare the related adjusting entry on December 31, 2018. c. Prepare TTek's journal entry to record the receipt of the payment on April 30, 2017.

(Essay)

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Question 111

Discounting a note receivable is similar to pledging an account receivable.

(True/False)

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Question 112

The direct write-off method estimates current-period bad debt expense by focusing on balance sheet relationships.

(True/False)

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Question 113

A customer check is received by ABC Floorcovering Inc. Detail the steps that should be taken to assure that the check is processed according to good internal control.

(Essay)

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Question 114

Which of the following statements is true?

(Multiple Choice)

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Question 115

How does the most-likely-amount approach to recording accounts receivables differ from the expected-value method?

(Essay)

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Question 116

Ming Company factors without recourse $6,000,000 of its accounts receivable for a finance charge of 6%. The finance company retains an amount equal to 8% of the accounts receivable for possible adjustments. What amount of cash would Ming receive as a result of this initial transaction?

(Multiple Choice)

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Question 117

Why are trade discounts not recorded in the accounts like sales discounts?

(Essay)

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Question 118

A company uses the gross method to account for cash discounts offered to its customers. If payment is made before the discount period expires, which of the following is correct?

(Multiple Choice)

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Question 119

Securitization of receivables involves taking many separate receivables and bundling them into a single investment pool.

(True/False)

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Question 120

Showing 101 - 120 of 134

Exam 9: Short-Term Operating Assets: Cash and Receivables

Darko Inc. made a $60,000 sale on account with terms of 1/15, n/30. If the company uses the gross method, which of the following will be included in the journal entry to record the sale on account?

Securitization of receivables eliminates the risk of non-collection.

Under the allowance method, the recovery of an account previously written-off ________.

The account Allowance for Uncollectible Accounts is classified as a contra-revenue account.

The aging-of-receivable method determines current-period bad debt expense by focusing on balance sheet relationships.

Gant Company factored its receivable with recourse to Rowlin Bank. Gant received cash as a result of this transaction. Assuming the three conditions for a sale are met, this transaction is best described as a ________.

Frigart Company sold goods for $13,000 with terms 2/10, n/30. How much would Frigart receive if the account were paid within the discount period?

The net realizable value of accounts receivable is calculated as ________.

Notes receivable are classified as current or noncurrent on the balance sheet based on the expected collection date.

Discounting a note receivable is similar to pledging an account receivable.

The direct write-off method estimates current-period bad debt expense by focusing on balance sheet relationships.

A customer check is received by ABC Floorcovering Inc. Detail the steps that should be taken to assure that the check is processed according to good internal control.

Which of the following statements is true?

How does the most-likely-amount approach to recording accounts receivables differ from the expected-value method?

Ming Company factors without recourse $6,000,000 of its accounts receivable for a finance charge of 6%. The finance company retains an amount equal to 8% of the accounts receivable for possible adjustments. What amount of cash would Ming receive as a result of this initial transaction?

Why are trade discounts not recorded in the accounts like sales discounts?

A company uses the gross method to account for cash discounts offered to its customers. If payment is made before the discount period expires, which of the following is correct?

Securitization of receivables involves taking many separate receivables and bundling them into a single investment pool.

The Financial Reporting Environment

Financial Reporting Theory

Judgment and Applied Financial Accounting Research

Review of the Accounting Cycle

Statements of Net Income and Comprehensive Net Income

Statements of Financial Position and Cash Flows and the Annual Report

Accounting and the Time Value of Money

Revenue Recognition

Extenssion: Ol Revenue Recognition Previous Standard

Short-Term Operating Assets: Inventory

Long-Term Operating Assets: Acquisition, Cost Allocation

Long-Term Operating Assets: Departures From Historical Cost

Operating Liabilities and Contingencies

Financing Liabilities

Accounting for Stockholders Equity

Investing Assets

Accounting for Income Taxes

Accounting for Leases

Extension: Ol Accounting for Leases Current Standard

Accounting for Employee Compensation and Benefits

Earnings Per Share

Accounting Corrections and Error Analysis

The Statement of Cash Flows

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