Question 1

Receivables are considered to be financial assets.

Accepted Answer

A) True 
 B)False

Question 2

The two key parties to a note are the maker and the payee.

Accepted Answer

A) True 
 B)False

Question 3

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 4

The collection of an account that had been previously written off under the allowance method for uncollectible accounts

Accepted Answer

A)  will increase net income in the period it is collected. 
B)  will decrease net income in the period it is collected. 
C)  requires a correcting entry for the period in which the account was written off. 
D)  does not affect net income in the period it is collected. 
A)  will increase net income in the period it is collected. 
B)  will decrease net income in the period it is collected. 
C)  requires a correcting entry for the period in which the account was written off. 
D)  does not affect net income in the period it is collected.

Question 5

If a company fails to record estimated bad debts expense, then

Accepted Answer

A)  the carrying amount is understated. 
B)  expenses are understated. 
C)  revenues are understated. 
D)  receivables are understated. 
A)  the carrying amount is understated. 
B)  expenses are understated. 
C)  revenues are understated. 
D)  receivables are understated.

Question 6

The carrying amount of Accounts Receivable is determined by adding the Allowance for Doubtful Accounts to Accounts Receivable.

Accepted Answer

A) True 
 B)False

Question 7

Interest revenue is never earned on accounts receivable.

Accepted Answer

A) True 
 B)False

Question 8

Calculate the missing amount for each of the following notes:

Accepted Answer

(a) $2,250 ($60,000 * 5% *9/12

Question 9

Under the aging method of estimating the allowance for doubtful accounts, the balance in the allowance account must be considered prior to adjusting for estimated uncollectible accounts.

Accepted Answer

A) True 
 B)False

Question 10

Writing off an uncollectible account involves

Accepted Answer

A)  a debit to Bad Debts Expense. 
B)  a debit to Allowance for Doubtful Accounts. 
C)  a debit to Sales Returns and Allowances. 
D)  a debit to Accounts Receivable. 
A)  a debit to Bad Debts Expense. 
B)  a debit to Allowance for Doubtful Accounts. 
C)  a debit to Sales Returns and Allowances. 
D)  a debit to Accounts Receivable.

Receivables are considered to be financial assets.

The two key parties to a note are the maker and the payee.

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

The collection of an account that had been previously written off under the allowance method for uncollectible accounts

If a company fails to record estimated bad debts expense, then

The carrying amount of Accounts Receivable is determined by adding the Allowance for Doubtful Accounts to Accounts Receivable.

Interest revenue is never earned on accounts receivable.

Calculate the missing amount for each of the following notes:

Under the aging method of estimating the allowance for doubtful accounts, the balance in the allowance account must be considered prior to adjusting for estimated uncollectible accounts.

Writing off an uncollectible account involves

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

Receivables are considered to be financial assets.

The two key parties to a note are the maker and the payee.

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

The collection of an account that had been previously written off under the allowance method for uncollectible accounts

If a company fails to record estimated bad debts expense, then

The carrying amount of Accounts Receivable is determined by adding the Allowance for Doubtful Accounts to Accounts Receivable.

Interest revenue is never earned on accounts receivable.

Calculate the missing amount for each of the following notes:

Under the aging method of estimating the allowance for doubtful accounts, the balance in the allowance account must be considered prior to adjusting for estimated uncollectible accounts.

Writing off an uncollectible account involves

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