Question 1

To record estimated uncollectible accounts using the allowance method, the adjusting entry would be a debit to

Accepted Answer

A) Accounts Receivable and a credit to Allowance for Doubtful Accounts. 
B) Bad Debts Expense and a credit to Allowance for Doubtful Accounts. 
C) Allowance for Doubtful Accounts and a credit to Accounts Receivable. 
D) Bad Debts Expense and a credit to Accounts Receivable. 
A) Accounts Receivable and a credit to Allowance for Doubtful Accounts. 
B) Bad Debts Expense and a credit to Allowance for Doubtful Accounts. 
C) Allowance for Doubtful Accounts and a credit to Accounts Receivable. 
D) Bad Debts Expense and a credit to Accounts Receivable.

Question 2

Under the allowance method for uncollectible accounts, the entry to write off an uncollectible account only involves statement of financial position accounts.

Accepted Answer

A) True 
 B)False

Question 3

The receivables turnover ratio is calculated by dividing

Accepted Answer

A) total sales by average gross accounts receivable. 
B) total sales by average net accounts receivable. 
C) net credit sales by average gross accounts receivable. 
D) net credit sales by ending average net accounts receivable. 
A) total sales by average gross accounts receivable. 
B) total sales by average net accounts receivable. 
C) net credit sales by average gross accounts receivable. 
D) net credit sales by ending average net accounts receivable.

Question 4

If an account is collected after having been previously written off

Accepted Answer

A) the allowance account should be debited. 
B) only the control account needs to be credited. 
C) both income statement and statement of financial position accounts will be affected. 
D) there will be both a debit and a credit to accounts receivable. 
A) the allowance account should be debited. 
B) only the control account needs to be credited. 
C) both income statement and statement of financial position accounts will be affected. 
D) there will be both a debit and a credit to accounts receivable.

Question 5

The maturity date of a note is

Accepted Answer

A) the period of time from the note's issue date to its due date. 
B) the day the note must be repaid. 
C) at the company's year end. 
D) when adjusting journal entries are made. 
A) the period of time from the note's issue date to its due date. 
B) the day the note must be repaid. 
C) at the company's year end. 
D) when adjusting journal entries are made.

Question 6

Net realizable value is determined by adding the Allowance for Doubtful Accounts to Accounts Receivable.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following receivables would not be classified as an "other receivable"?

Accepted Answer

A) Advance to an employee 
B) Refundable income tax 
C) Notes receivable 
D) Interest receivable 
A) Advance to an employee 
B) Refundable income tax 
C) Notes receivable 
D) Interest receivable

Question 8

The face value of a note refers to the amount

Accepted Answer

A) that has been dishonoured. 
B) borrowed plus interest received at maturity from the maker. 
C) at which the note receivable is recorded. 
D) remaining after a service charge has been deducted. 
A) that has been dishonoured. 
B) borrowed plus interest received at maturity from the maker. 
C) at which the note receivable is recorded. 
D) remaining after a service charge has been deducted.

Question 9

LeBlanc Corp. signed a document promising to pay First Bank a specified amount of money at a definite future date at a certain interest rate. This transaction is reported as a(n)

Accepted Answer

A) note receivable on LeBlanc's books and a note payable on First Bank's books. 
B) note payable on LeBlanc's books and a note receivable on First Bank's books. 
C) account receivable on LeBlanc's books and an account payable on First Bank's books. 
D) account payable on LeBlanc's books and an account receivable on First Bank's books. 
A) note receivable on LeBlanc's books and a note payable on First Bank's books. 
B) note payable on LeBlanc's books and a note receivable on First Bank's books. 
C) account receivable on LeBlanc's books and an account payable on First Bank's books. 
D) account payable on LeBlanc's books and an account receivable on First Bank's books.

Question 10

An aging of a company's accounts receivable indicates that $6,500 is estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,200 credit balance, the adjustment to record bad debts for the period will require a

Accepted Answer

A) debit to Bad Debts Expense for $6,500. 
B) debit to Allowance for Doubtful Accounts for $5,300. 
C) debit to Bad Debts Expense for $5,300. 
D) credit to Allowance for Doubtful Accounts for $7,700. 
A) debit to Bad Debts Expense for $6,500. 
B) debit to Allowance for Doubtful Accounts for $5,300. 
C) debit to Bad Debts Expense for $5,300. 
D) credit to Allowance for Doubtful Accounts for $7,700.

Question 11

The average collection period for receivables is calculated by dividing 365 days by

Accepted Answer

A) net credit sales. 
B) average accounts receivable. 
C) ending accounts receivable. 
D) receivables turnover ratio. 
A) net credit sales. 
B) average accounts receivable. 
C) ending accounts receivable. 
D) receivables turnover ratio.

Question 12

Advances to employees are a type of accounts receivable.

Accepted Answer

A) True 
 B)False

Question 13

Only the net amount of receivables needs to be reported in the statement of financial position.

Accepted Answer

A) True 
 B)False

Question 14

Interest on a 3-month, 3%, $20,000 note is calculated by multiplying $20,000 * 3% * 3.

Accepted Answer

A) True 
 B)False

Question 15

Uncollectible notes receivable should be estimated at year end and recorded as a debit to Bad Debts Expense and a credit to Notes Receivable.

Accepted Answer

A) True 
 B)False

Question 16

A dishonoured note receivable

Accepted Answer

A) is paid in full at its maturity date. 
B) is no longer a negotiable instrument. 
C) can be used in place of a cheque. 
D) can only be collected by a bank. 
A) is paid in full at its maturity date. 
B) is no longer a negotiable instrument. 
C) can be used in place of a cheque. 
D) can only be collected by a bank.

Question 17

A dishonoured note is a note that is not paid in full at maturity.

Accepted Answer

A) True 
 B)False

Question 18

The receivable that is usually evidenced by a formal instrument of credit is a(n)

Accepted Answer

A) trade receivable. 
B) note receivable. 
C) account receivable. 
D) income tax receivable. 
A) trade receivable. 
B) note receivable. 
C) account receivable. 
D) income tax receivable.

Question 19

The total interest on a $10,000, 6%, 6-month note receivable is

Accepted Answer

A) $ 50. 
B) $100. 
C) $300. 
D) $600. 
A) $ 50. 
B) $100. 
C) $300. 
D) $600.

Question 20

Receivables are considered to be financial assets.

Accepted Answer

A) True 
 B)False

To record estimated uncollectible accounts using the allowance method, the adjusting entry would be a debit to

Under the allowance method for uncollectible accounts, the entry to write off an uncollectible account only involves statement of financial position accounts.

The receivables turnover ratio is calculated by dividing

If an account is collected after having been previously written off

The maturity date of a note is

Net realizable value is determined by adding the Allowance for Doubtful Accounts to Accounts Receivable.

Which of the following receivables would not be classified as an "other receivable"?

The face value of a note refers to the amount

LeBlanc Corp. signed a document promising to pay First Bank a specified amount of money at a definite future date at a certain interest rate. This transaction is reported as a(n)

An aging of a company's accounts receivable indicates that $6,500 is estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,200 credit balance, the adjustment to record bad debts for the period will require a

The average collection period for receivables is calculated by dividing 365 days by

Advances to employees are a type of accounts receivable.

Only the net amount of receivables needs to be reported in the statement of financial position.

Interest on a 3-month, 3%, $20,000 note is calculated by multiplying $20,000 * 3% * 3.

Uncollectible notes receivable should be estimated at year end and recorded as a debit to Bad Debts Expense and a credit to Notes Receivable.

A dishonoured note receivable

A dishonoured note is a note that is not paid in full at maturity.

The receivable that is usually evidenced by a formal instrument of credit is a(n)

The total interest on a $10,000, 6%, 6-month note receivable is

Receivables are considered to be financial assets.

The Purpose and Use of Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations

Reporting and Analyzing Inventory

Internal Control and Cash

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Shareholders Equity

Reporting and Analyzing Investments

Statement of Cash Flows

Performance Measurement

Filters

Exam 8: Reporting and Analyzing Receivables

To record estimated uncollectible accounts using the allowance method, the adjusting entry would be a debit to

Under the allowance method for uncollectible accounts, the entry to write off an uncollectible account only involves statement of financial position accounts.

The receivables turnover ratio is calculated by dividing

If an account is collected after having been previously written off

The maturity date of a note is

Net realizable value is determined by adding the Allowance for Doubtful Accounts to Accounts Receivable.

Which of the following receivables would not be classified as an "other receivable"?

The face value of a note refers to the amount

LeBlanc Corp. signed a document promising to pay First Bank a specified amount of money at a definite future date at a certain interest rate. This transaction is reported as a(n)

An aging of a company's accounts receivable indicates that $6,500 is estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,200 credit balance, the adjustment to record bad debts for the period will require a

The average collection period for receivables is calculated by dividing 365 days by

Advances to employees are a type of accounts receivable.

Only the net amount of receivables needs to be reported in the statement of financial position.

Interest on a 3-month, 3%, $20,000 note is calculated by multiplying $20,000 * 3% * 3.

Uncollectible notes receivable should be estimated at year end and recorded as a debit to Bad Debts Expense and a credit to Notes Receivable.

A dishonoured note receivable

A dishonoured note is a note that is not paid in full at maturity.

The receivable that is usually evidenced by a formal instrument of credit is a(n)

The total interest on a $10,000, 6%, 6-month note receivable is

Receivables are considered to be financial assets.

The Purpose and Use of Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations

Reporting and Analyzing Inventory

Internal Control and Cash

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Shareholders Equity

Reporting and Analyzing Investments

Statement of Cash Flows

Performance Measurement

Filters