Question 1

A ratio that is related to the receivables turnover ratio is the

Accepted Answer

A) inventory turnover ratio. 
B) days sales in inventory ratio. 
C) bad debts ratio. 
D) average collection period. 
A) inventory turnover ratio. 
B) days sales in inventory ratio. 
C) bad debts ratio. 
D) average collection period.

Question 2

The balance of the Allowance for Doubtful Accounts prior to making the adjusting entry to record Bad Debts Expense

Accepted Answer

A) is relevant when using the percentage of receivables basis. 
B) is relevant when debit card sales are made. 
C) is relevant when notes receivable are used. 
D) will never show a debit balance at this stage in the accounting cycle. 
A) is relevant when using the percentage of receivables basis. 
B) is relevant when debit card sales are made. 
C) is relevant when notes receivable are used. 
D) will never show a debit balance at this stage in the accounting cycle.

Question 3

A critical part of managing receivables is determining who should be extended credit and who should not.

Accepted Answer

A) True 
 B)False

Question 4

A receivable is recognized when the sales effort is substantially complete.

Accepted Answer

A) True 
 B)False

Question 5

The maturity value of a $20,000, 6%, 4-month note receivable dated July 3, with interest due at maturity, is

Accepted Answer

A) $ 400. 
B) $20,000. 
C) $20,400. 
D) $21,200. 
A) $ 400. 
B) $20,000. 
C) $20,400. 
D) $21,200.

Question 6

When posting is up-to-date, the balance in the accounts receivable subsidiary ledger must equal the balance in the general ledger.

Accepted Answer

A) True 
 B)False

Question 7

A subsidiary ledger is a group of accounts that provides details about a control account in the general ledger.

Accepted Answer

A) True 
 B)False

Question 8

Both accounts receivable and notes receivable represent claims that are expected to be collected in cash.

Accepted Answer

A) True 
 B)False

Question 9

The total interest on an $8,000, 5%, 3-month note receivable is

Accepted Answer

A) $ 100. 
B) $ 200. 
C) $ 400. 
D) $1,200. 
A) $ 100. 
B) $ 200. 
C) $ 400. 
D) $1,200.

Question 10

An important issue in valuing accounts receivable is

Accepted Answer

A) the amount of notes receivable in relation to accounts receivable. 
B) calculation of the net realizable value. 
C) proper recording of sales discounts and sales allowances. 
D) doing a thorough credit check on your customers. 
A) the amount of notes receivable in relation to accounts receivable. 
B) calculation of the net realizable value. 
C) proper recording of sales discounts and sales allowances. 
D) doing a thorough credit check on your customers.

Question 11

Accounts receivable may be transferred to investors in return for cash through a process called securitization.

Accepted Answer

A) True 
 B)False

Question 12

It is possible for the allowance account to have a debit balance before the year end adjusting entry is recorded.

Accepted Answer

A) True 
 B)False

A ratio that is related to the receivables turnover ratio is the

The balance of the Allowance for Doubtful Accounts prior to making the adjusting entry to record Bad Debts Expense

A critical part of managing receivables is determining who should be extended credit and who should not.

A receivable is recognized when the sales effort is substantially complete.

The maturity value of a $20,000, 6%, 4-month note receivable dated July 3, with interest due at maturity, is

When posting is up-to-date, the balance in the accounts receivable subsidiary ledger must equal the balance in the general ledger.

A subsidiary ledger is a group of accounts that provides details about a control account in the general ledger.

Both accounts receivable and notes receivable represent claims that are expected to be collected in cash.

The total interest on an $8,000, 5%, 3-month note receivable is

An important issue in valuing accounts receivable is

Accounts receivable may be transferred to investors in return for cash through a process called securitization.

It is possible for the allowance account to have a debit balance before the year end adjusting entry is recorded.

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

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Exam 8: Reporting and Analyzing Receivables

A ratio that is related to the receivables turnover ratio is the

The balance of the Allowance for Doubtful Accounts prior to making the adjusting entry to record Bad Debts Expense

A critical part of managing receivables is determining who should be extended credit and who should not.

A receivable is recognized when the sales effort is substantially complete.

The maturity value of a $20,000, 6%, 4-month note receivable dated July 3, with interest due at maturity, is

When posting is up-to-date, the balance in the accounts receivable subsidiary ledger must equal the balance in the general ledger.

A subsidiary ledger is a group of accounts that provides details about a control account in the general ledger.

Both accounts receivable and notes receivable represent claims that are expected to be collected in cash.

The total interest on an $8,000, 5%, 3-month note receivable is

An important issue in valuing accounts receivable is

Accounts receivable may be transferred to investors in return for cash through a process called securitization.

It is possible for the allowance account to have a debit balance before the year end adjusting entry is recorded.

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