Question 1

The party promising to pay a note at maturity is the payee.

Accepted Answer

A) True 
 B)False  False

Question 2

After the accounts are adjusted and closed at the end of the fiscal year,Accounts Receivable has a balance of $430,000 and Allowance for Doubtful Accounts has a balance of $30,000.What is the net realizable value of the accounts receivable?

Accepted Answer

A) $30,000 
B) $460,000 
C) $430,000 
D) $400,000 
A) $30,000 
B) $460,000 
C) $430,000 
D) $400,000 D

Question 3

Under the direct write-off method,an attempt is made to match Bad Debt Expense to sales revenues in the same accounting period.

Accepted Answer

A) True 
 B)False  False

Question 4

Of the three widely used inventory costing methods (FIFO,LIFO,and average),the FIFO method of costing inventory is based on the assumption that costs are charged against revenues in the order in which they were incurred.

Accepted Answer

A) True 
 B)False

Question 5

A 60-day,10% note for $6,000 dated April 15 is received from a customer on account.
The face value of the note is

Accepted Answer

A) $6,100. 
B) $5,400. 
C) $5,900. 
D) $6,000. 
A) $6,100. 
B) $5,400. 
C) $5,900. 
D) $6,000.

Question 6

If merchandise inventory is being valued at cost and the price level is consistently rising,which method of costing will yield the largest gross profit?

Accepted Answer

A) Average cost 
B) LIFO 
C) FIFO 
D) All methods will generate the same gross profit. 
A) Average cost 
B) LIFO 
C) FIFO 
D) All methods will generate the same gross profit.

Question 7

"Market," as used in the phrase "lower of cost or market" for valuing inventory,refers to the price at which the inventory is being offered for sale by its owner.

Accepted Answer

A) True 
 B)False

Question 8

When merchandise sold is assumed to be in the order in which the expenditures were made,the inventory method is called

Accepted Answer

A) first-in,last-out. 
B) last-in,first-out. 
C) first-in,first-out. 
D) average cost. 
A) first-in,last-out. 
B) last-in,first-out. 
C) first-in,first-out. 
D) average cost.

Question 9

Inventory costing methods place primary emphasis on assumptions about

Accepted Answer

A) flow of goods. 
B) flow of costs. 
C) flow of goods or costs depending on the method. 
D) flow of values. 
A) flow of goods. 
B) flow of costs. 
C) flow of goods or costs depending on the method. 
D) flow of values.

Question 10

A note receivable due in 18 months is listed on the balance sheet under the caption

Accepted Answer

A) long-term liabilities. 
B) fixed assets. 
C) current assets. 
D) investments. 
A) long-term liabilities. 
B) fixed assets. 
C) current assets. 
D) investments.

Question 11

The inventory method that assigns the most recent costs to cost of good sold is

Accepted Answer

A) FIFO. 
B) LIFO. 
C) average cost. 
D) specific identification. 
A) FIFO. 
B) LIFO. 
C) average cost. 
D) specific identification.

Question 12

The process of a company selling its accounts receivable to another company is referred to as

Accepted Answer

A) discounting. 
B) adjusting. 
C) assignment. 
D) factoring. 
A) discounting. 
B) adjusting. 
C) assignment. 
D) factoring.

Question 13

Classify the following as either Current Assets (CA),Investments (I),or both (CA and I).

Accepted Answer

The answer of Classify the following as either Current Assets...

Question 14

The maturity value of a 12%,60-day note for $1,000 is $1,020.

Accepted Answer

A) True 
 B)False

Question 15

Other receivables do NOT include

Accepted Answer

A) accounts receivable. 
B) interest receivable. 
C) taxes receivable. 
D) receivables from employees or officers. 
A) accounts receivable. 
B) interest receivable. 
C) taxes receivable. 
D) receivables from employees or officers.

Question 16

Allowance for Doubtful Accounts has an unadjusted balance of $500 at the end of the year,and uncollectible accounts expense is estimated at 1% of net sales.If net sales are $950,000,the amount of the adjustment to record the provision for doubtful accounts is

Accepted Answer

A) $9,500. 
B) $500. 
C) $8,500. 
D) $9,000. 
A) $9,500. 
B) $500. 
C) $8,500. 
D) $9,000.

Question 17

In reference to a promissory note,the person who makes the promise to pay is called the

Accepted Answer

A) maker. 
B) payee. 
C) seller. 
D) receiver. 
A) maker. 
B) payee. 
C) seller. 
D) receiver.

Question 18

Under which method of cost flows is the inventory assumed to be composed of the most
Recent costs?

Accepted Answer

A) Average cost 
B) Last-in,first-out 
C) First-in,last-out 
D) First-in,first-out 
A) Average cost 
B) Last-in,first-out 
C) First-in,last-out 
D) First-in,first-out

Question 19

Merchandise inventory is reported on the balance sheet in the section entitled

Accepted Answer

A) current assets. 
B) fixed assets. 
C) current liabilities. 
D) stockholders' equity. 
A) current assets. 
B) fixed assets. 
C) current liabilities. 
D) stockholders' equity.

Question 20

Other than accounts receivable and notes receivable,name other receivables that might be included on the balance sheet.

Accepted Answer

The answer of Other than accounts receivable and notes receivable,name...

The party promising to pay a note at maturity is the payee.

After the accounts are adjusted and closed at the end of the fiscal year,Accounts Receivable has a balance of $430,000 and Allowance for Doubtful Accounts has a balance of $30,000.What is the net realizable value of the accounts receivable?

Under the direct write-off method,an attempt is made to match Bad Debt Expense to sales revenues in the same accounting period.

Of the three widely used inventory costing methods (FIFO,LIFO,and average),the FIFO method of costing inventory is based on the assumption that costs are charged against revenues in the order in which they were incurred.

A 60-day,10% note for $6,000 dated April 15 is received from a customer on account. The face value of the note is

If merchandise inventory is being valued at cost and the price level is consistently rising,which method of costing will yield the largest gross profit?

"Market," as used in the phrase "lower of cost or market" for valuing inventory,refers to the price at which the inventory is being offered for sale by its owner.

When merchandise sold is assumed to be in the order in which the expenditures were made,the inventory method is called

Inventory costing methods place primary emphasis on assumptions about

A note receivable due in 18 months is listed on the balance sheet under the caption

The inventory method that assigns the most recent costs to cost of good sold is

The process of a company selling its accounts receivable to another company is referred to as

Classify the following as either Current Assets (CA),Investments (I),or both (CA and I).

The maturity value of a 12%,60-day note for $1,000 is $1,020.

Other receivables do NOT include

Allowance for Doubtful Accounts has an unadjusted balance of $500 at the end of the year,and uncollectible accounts expense is estimated at 1% of net sales.If net sales are $950,000,the amount of the adjustment to record the provision for doubtful accounts is

In reference to a promissory note,the person who makes the promise to pay is called the

Under which method of cost flows is the inventory assumed to be composed of the most Recent costs?

Merchandise inventory is reported on the balance sheet in the section entitled

Other than accounts receivable and notes receivable,name other receivables that might be included on the balance sheet.

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley,internal Control,and Cash

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Accounting Systems for Manufacturing Businesses

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

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Exam 6: Receivables and Inventories

The party promising to pay a note at maturity is the payee.

After the accounts are adjusted and closed at the end of the fiscal year,Accounts Receivable has a balance of $430,000 and Allowance for Doubtful Accounts has a balance of $30,000.What is the net realizable value of the accounts receivable?

Under the direct write-off method,an attempt is made to match Bad Debt Expense to sales revenues in the same accounting period.

Of the three widely used inventory costing methods (FIFO,LIFO,and average),the FIFO method of costing inventory is based on the assumption that costs are charged against revenues in the order in which they were incurred.

A 60-day,10% note for $6,000 dated April 15 is received from a customer on account. The face value of the note is

If merchandise inventory is being valued at cost and the price level is consistently rising,which method of costing will yield the largest gross profit?

"Market," as used in the phrase "lower of cost or market" for valuing inventory,refers to the price at which the inventory is being offered for sale by its owner.

When merchandise sold is assumed to be in the order in which the expenditures were made,the inventory method is called

Inventory costing methods place primary emphasis on assumptions about

A note receivable due in 18 months is listed on the balance sheet under the caption

The inventory method that assigns the most recent costs to cost of good sold is

The process of a company selling its accounts receivable to another company is referred to as

Classify the following as either Current Assets (CA),Investments (I),or both (CA and I).

The maturity value of a 12%,60-day note for $1,000 is $1,020.

Other receivables do NOT include

Allowance for Doubtful Accounts has an unadjusted balance of $500 at the end of the year,and uncollectible accounts expense is estimated at 1% of net sales.If net sales are $950,000,the amount of the adjustment to record the provision for doubtful accounts is

In reference to a promissory note,the person who makes the promise to pay is called the

Under which method of cost flows is the inventory assumed to be composed of the most Recent costs?

Merchandise inventory is reported on the balance sheet in the section entitled

Other than accounts receivable and notes receivable,name other receivables that might be included on the balance sheet.

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley,internal Control,and Cash

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Accounting Systems for Manufacturing Businesses

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

Filters