Chapter9b - Chapter 9b 1 Notes and accounts receivable that result from sales transactions are often called trade receivables A True B Fals e 2 The

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 9b 1. Notes and accounts receivable that result from sales transactions are often called trade receivables. A. True B. Fals e 2. The opportunity to receive a cash discount usually occurs when a retailer sells to customers. A. True B. Fals e 3. Cash (net) realizable value is the net amount the company expects to receive in cash. A. True B. Fals e 4. The percentage-of-receivables basis results in a better matching of expenses with revenues than the percentage-of-sales basis. A. True B. Fals e 5. Under the percentage-of-receivables basis, the amount of bad debt expense is the difference between the required balance and the existing balance in the allowance account. A. True B. Fals e 6. Retailers consider sales from the use of bank credit cards as credit sales.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
A. True B. Fals e 7. In a promissory note, the party making the promise to pay is called the maker. A. True B. Fals e 8. To determine the maturity date of a note, you need to include the date the note is issued but omit the due date. A.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/27/2010 for the course MGT 011A taught by Professor Hancock,john during the Spring '07 term at UC Davis.

Page1 / 15

Chapter9b - Chapter 9b 1 Notes and accounts receivable that result from sales transactions are often called trade receivables A True B Fals e 2 The

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online