The December 31, the trial balance of ABC company before adjustments included the following accounts: \[\begin{array} { | l | l | l | } \hline & \text { Debit } & \text { Credit } \\ \hline \text { Allowance for doubtrul accounts } & \$ 2,000 & \\ \hline \text { Sales } & & \$ 830,000 \\ \hline \text { Sales returns and allowances } & 10,000 & \\ \hline \end{array}\] The company estimates its bad debts based upon 2 percent of net credit sales. What amount should it record as bad debt expense, assuming all sales are credit sales?

A) $14,400 B) $14,600 C) $16,400 D) $16,600 A) $14,400 B) $14,600 C) $16,400 D) $16,600

Exam 4: Statements of Financial Position and Changes in Equity; Disclosure Notes

The December 31, the trial balance of ABC company before adjustments included the following accounts: Debit Credit Allowance for doubtrul accounts \ 2,000 Sales \ 830,000 Sales returns and allowances 10,000 The company estimates its bad debts based upon 2 percent of net credit sales. What amount should it record as bad debt expense, assuming all sales are credit sales?

(Multiple Choice)

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Question 21

Monetary items are usually fixed in amount while non-monetary items are not.

(True/False)

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Question 22

The income statement is related to the balance sheet because:

(Multiple Choice)

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Question 23

Which one of the following is a contingent loss that is required to be disclosed only in a note to the financial statements?

(Multiple Choice)

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Question 24

A company reported current assets of $40,000 and current liabilities of $80,000, therefore, the: (a) Amount of working capital was $_. (b) Working capital ratio was $_____.

(Essay)

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Question 25

The cash surrender value of an insurance policy should be classified on the balance sheet under the caption:

(Multiple Choice)

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Question 26

ABC Inc. has an overdraft (negative) balance with Bank A and a positive balance in its account with Bank B. These accounts may be offset.

(True/False)

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Question 27

When a company depends heavily on one or a few customer(s) for its business, this must be disclosed in the notes to the financial statements.

(True/False)

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Question 28

Public companies must identify their various operating segments when each of them contributes to at least what percentage of total revenues?

(Multiple Choice)

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Question 29

For simplicity, all strategic investments may be combined into a single line item on the face of the balance sheet.

(True/False)

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Question 30

Under ASPE, reporting in the main body of the financial statements is required for:

(Multiple Choice)

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Question 31

When the account receivable of an individual customer has a credit balance of a material amount, this amount:

(Multiple Choice)

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Question 32

Which item below is not a current asset?

(Multiple Choice)

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Question 33

The party responsible for the financial statements of a company is the:

(Multiple Choice)

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Question 34

The balance sheet and cash flow statement represent the assets, liabilities, owners' equity, and cash flows at a specific point in time; whereas, the income statement encompasses a specific period of time.

(True/False)

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Question 35

A corporation paid a six-year insurance premium on January 1, year 1, for $12,000. It recorded the prepayment in two asset accounts--one with a $2,000 debit balance and one with a $10,000 debit balance. Under which of the following captions should the account be with the $10,000 balance be classified on a balance sheet dated January 1, year 1?

(Multiple Choice)

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Question 36

Long-term liabilities are distinguished from current liabilities on the basis of:

(Multiple Choice)

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Question 37

A company's main inventory warehouse burned down a few days after the company's fiscal year end - well before the financial statements for the last year were issued. The company's insurer will only cover a portion of the estimated losses. Given this event, what should the company do from an accounting/financial reporting standpoint?

(Multiple Choice)

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Question 38

Accounts receivable are reported at:

(Multiple Choice)

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Question 39

A statement of changes in Equity is mandatory under both IFRS and ASPE.

(True/False)

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Question 40

Showing 21 - 40 of 144

Monetary items are usually fixed in amount while non-monetary items are not.

The income statement is related to the balance sheet because:

Which one of the following is a contingent loss that is required to be disclosed only in a note to the financial statements?

A company reported current assets of $40,000 and current liabilities of $80,000, therefore, the: (a) Amount of working capital was $_. (b) Working capital ratio was $_____.

The cash surrender value of an insurance policy should be classified on the balance sheet under the caption:

ABC Inc. has an overdraft (negative) balance with Bank A and a positive balance in its account with Bank B. These accounts may be offset.

When a company depends heavily on one or a few customer(s) for its business, this must be disclosed in the notes to the financial statements.

Public companies must identify their various operating segments when each of them contributes to at least what percentage of total revenues?

For simplicity, all strategic investments may be combined into a single line item on the face of the balance sheet.

Under ASPE, reporting in the main body of the financial statements is required for:

When the account receivable of an individual customer has a credit balance of a material amount, this amount:

Which item below is not a current asset?

The party responsible for the financial statements of a company is the:

The balance sheet and cash flow statement represent the assets, liabilities, owners' equity, and cash flows at a specific point in time; whereas, the income statement encompasses a specific period of time.

Long-term liabilities are distinguished from current liabilities on the basis of:

Accounts receivable are reported at:

A statement of changes in Equity is mandatory under both IFRS and ASPE.

The Framework for Financial Reporting

Accounting Judgements

Statements of Income and Comprehensive Income

The Statement of Cash Flows

Revenue Recognition

Financial Assets: Cash and Receivables

Cost-Based Inventories and Cost of Sales

Long-Lived Assets

Depreciation, Amortization, and Impairment

Financial Instruments: Investments in Bonds and Equity Securities

Filters

Exam 4: Statements of Financial Position and Changes in Equity; Disclosure Notes

Monetary items are usually fixed in amount while non-monetary items are not.

The income statement is related to the balance sheet because:

Which one of the following is a contingent loss that is required to be disclosed only in a note to the financial statements?

A company reported current assets of $40,000 and current liabilities of $80,000, therefore, the: (a) Amount of working capital was $_____________________. (b) Working capital ratio was $_________________________.

The cash surrender value of an insurance policy should be classified on the balance sheet under the caption:

ABC Inc. has an overdraft (negative) balance with Bank A and a positive balance in its account with Bank B. These accounts may be offset.

When a company depends heavily on one or a few customer(s) for its business, this must be disclosed in the notes to the financial statements.

Public companies must identify their various operating segments when each of them contributes to at least what percentage of total revenues?

For simplicity, all strategic investments may be combined into a single line item on the face of the balance sheet.

Under ASPE, reporting in the main body of the financial statements is required for:

When the account receivable of an individual customer has a credit balance of a material amount, this amount:

Which item below is not a current asset?

The party responsible for the financial statements of a company is the:

The balance sheet and cash flow statement represent the assets, liabilities, owners' equity, and cash flows at a specific point in time; whereas, the income statement encompasses a specific period of time.

Long-term liabilities are distinguished from current liabilities on the basis of:

Accounts receivable are reported at:

A statement of changes in Equity is mandatory under both IFRS and ASPE.

The Framework for Financial Reporting

Accounting Judgements

Statements of Income and Comprehensive Income

The Statement of Cash Flows

Revenue Recognition

Financial Assets: Cash and Receivables

Cost-Based Inventories and Cost of Sales

Long-Lived Assets

Depreciation, Amortization, and Impairment

Financial Instruments: Investments in Bonds and Equity Securities

Filters

A company reported current assets of $40,000 and current liabilities of $80,000, therefore, the: (a) Amount of working capital was $_. (b) Working capital ratio was $_____.