Exam 10: Short-Term Operating Assets: Cash and Receivables

What is the company's accounts receivable turnover ratio?

In which of the following situations are a company's receivables held as collateral for a financing situation?

According to U.S.GAAP,checks written in excess of the balance of a bank account are deducted from the cash account on the balance sheet.

Frigart Company sold goods for $1,000 with terms 2/10,n/30.How much would Frigart receive if the account were paid within the discount period?

When does a company record the transfer of accounts receivable as a sale? As a secured borrowing (a liability)?

When the stated rate is equal to the market rate,the present value of future cash flows from a note is equal to the face value of the note.

The allowance method is used to estimate not only the net realizable value of accounts receivable but also the current period's bad debt expense.

Under the net method of recording accounts receivable,a company assumes that the customer will take the sales discount.

To be recognized as a sale under IFRS,companies must give up effective control of factored receivables.

Which method of estimating bad debt expense focuses on matching that expense to revenues generated from offering credit sales?

Which of the following is not a requirement for recognizing that a transaction can be recorded as a sale of receivables?

During the year,Liptom Company made an entry to write off a $4,000 uncollectible account.Before this entry was made,the balance in accounts receivable was $60,000 and the balance in the allowance account was $4,500 (normal balance).What is the net realizable value of accounts receivable after the write-off entry?

What is the company's days sales outstanding?

Under U.S.GAAP,bank overdraft should generally be reported as ________.

Net realizable value (NRV)describes the estimated amount of a company's expected cost of uncollectible accounts.

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

Gappule Corp.made a $10,000 sale on account with terms: of 1/15,n/30.If the company uses the net method,which of the following will be included in the journal entry to record customer payment within the discount period?

The cash operating cycle is equal to (1)days accounts payable outstanding minus (2)days sales outstanding minus (3)days inventory on hand.

Bad debt expense represents the amount of ________.

Pledged receivables are reported as current assets while assigned receivables are reported as non-current assets.