CH 7 - Sample Test Questions CHAPTER 7 CASH AND RECEIVABLES...

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

View Full Document Right Arrow Icon

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

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Sample Test Questions CHAPTER 7 CASH AND RECEIVABLES MULTIPLE CHOICE—Conceptual Answer No. Description d 1. Identification of cash items. b 2. Identification of cash items. d 3. Classification of travel advance. d 4. Classification of bank overdraft. d 5. Classification of compensating balances. d 6. Definition of trade receivables. d 7. Identification of trade receivables. a 8. Classification of sales discounts. c 9. Valuation of short-term receivables. d 10. Bad debt provision and the matching concept. a 11. Bad debts as a percentage of sales. b 12. Bad debts as a percentage of sales. a 13. Bad debts as a percentage of receivables. d 14. Financial statement effect of a note recorded incorrectly. c 15. Factoring accounts receivable without recourse. d 16. Accounts receivable turnover ratio. c *17. Entry to replenish Petty Cash. c *18. Purpose of Cash Over & Short account. b *19. Classification of bank service charges. c *20. Treatment of bank credits on bank reconciliation. MULTIPLE CHOICE—Computational Answer No. Description d 21. Calculate effective interest on loan with required compensatory balance. c 22. Determine effective annual interest rate of sales discount. b 23. Calculate balance of accounts receivable. b 24. Calculate net realizable value of accounts receivable. d 25. Calculate net realizable value of accounts receivable. c 26. Calculate bad debt expense using aging of receivables. b 27. Calculate bad debt expense using percent of sales. a 28. Calculate bad debt expense using percent of receivables. b 29. Determine appropriate interest rate for a zero-interest-bearing note. a 30. Calculate present value of a zero-interest-bearing note. c 31. Calculate cash proceeds from transfer of receivables. c 32. Entry to record collection of assigned receivables. b 33. Factoring receivables without recourse. b 34. Factoring receivables with recourse. d *35. Entry to replenish petty cash. b *36. Calculate correct balance in bank account. b *37. Calculate correct cash balance. c *38. Calculate correct cash balance. b *39. Calculate correct cash balance. c *40. Calculate correct cash balance. *This topic is dealt with in an Appendix to the chapter. MULTIPLE CHOICE—CPA Adapted Answer No. Description a 41. Determine current net receivables. d 42. Calculate adjustment for bad debts. d 43. Calculate bad debt expense. b 44. Calculate adjustment to write off bad debts. c 45. Effect of a write-off under the allowance method. d 46. Determine balance in the Allowance for Doubtful Accounts. c 47. Determine interest revenue of a zero-interest-bearing note. c 48. Determine interest receivable at year end. b 49. Assignment and factoring of accounts receivable....
View Full Document

This note was uploaded on 02/25/2010 for the course ACCT 300A taught by Professor Bob during the Spring '10 term at Arizona.

Page1 / 21

CH 7 - Sample Test Questions CHAPTER 7 CASH AND RECEIVABLES...

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