assignment6 - INTERMEDIATE ACCOUNTING Assignment #6 (CH7)...

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INTERMEDIATE ACCOUNTING Assignment #6 (CH7) Due date: Nov 10, 2009 (Tuesday) Student name: Student ID: Please write your answer in each blank 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 1. Which of the following methods of determining annual bad debt expense best achieves the matching concept? a. Percentage of sales b. Percentage of ending accounts receivable c. Percentage of average accounts receivable d. Direct write-off 2. Bank overdrafts, if material, should be a. reported as a deduction from the current asset section. b. reported as a deduction from cash. c. netted against cash and a net cash amount reported. d. reported as a current liability. 3. Under the allowance method of recognizing uncollectible accounts, the entry to write off an uncollectible account a. increases the allowance for uncollectible accounts. b. has no effect on the allowance for uncollectible accounts. c. has no effect on net income. d. decreases net income. 4. Assuming that the ideal measure of short-term receivables in the balance sheet is the discounted value of the cash to be received in the future, failure to follow this practice usually does not make the balance sheet misleading because a. most short-term receivables are not interest-bearing.
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b. the allowance for uncollectible accounts includes a discount element. c. the amount of the discount is not material.
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This note was uploaded on 03/29/2010 for the course FINANCE 0011100110 taught by Professor Shentingchun during the Spring '10 term at Nashville State Community College.

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assignment6 - INTERMEDIATE ACCOUNTING Assignment #6 (CH7)...

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