9 Interactive Quiz B

9 Interactive Quiz B - Interactive Quiz B Home > Chapter 9...

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Interactive Quiz B http://highered.mcgraw-hill.com/sites/0072996536/student_view0/chapter9/interactive_quiz_b.html[6/22/2010 6:47:29 PM] Interactive Quiz B (See related pages) Results Reporter Out of 30 questions, you answered 10 correctly with a final grade of 33% 10 correct (33%) 20 incorrect (67%) 0 unanswered (0%) Your Results: The correct answer for each question is indicated by a . INCORRECT Any amount that is owed to a company may be called an account receivable but the Accounts Receivable account is used to record amounts owed to us from credit sales. A) True B) False Feedback: It is true that any amount that is owed to a company may be called an account receivable but the Accounts Receivable account is used to record amounts owed to us from credit sales. 2 CORRECT A company has 100 customers who purchase the company's goods by charging them to either a MasterCard or a VISA credit card. It is correct to say that this company has 100 accounts receivable. A) True B) False Feedback: This company only has two accounts receivable, one for MasterCard and one for VISA. It is the credit card companies who, between them, have 100 accounts receivable. INCORRECT The accounts receivable subsidiary ledger contains an account for each customer that purchases on credit. Each customer's account will show, at least, the date items are purchased, the amount of the purchase, the date payments are received, and the amount of payment received. A) True B) False Feedback: These four pieces of information are found in the accounts receivable subsidiary ledger. 4 CORRECT If a customer purchases an item on credit in the current accounting period and fully pays for that item in the same period, a violation of the matching principle has occurred. A) True B) False Feedback: No violation of the matching principle has occurred. It is when customers fail to pay their accounts on a timely basis that the firm must make an estimate of its bad debt expense. 5 CORRECT The direct write-off method of accounting for bad debts records the expense attributable to uncollectible accounts only in the year the account proves to be uncollectible and, therefore, follows the matching principle. A) True B) False Feedback: The direct write-off method violates the matching principle because it makes no attempt to associate the amount of bad debt expense to the year in which the sale was made. 6 INCORRECT The matching principle requires that bad debt expense be reported in the same accounting period as the sales they helped produce. A) True B) False Feedback: This is a true statement. 7 INCORRECT Even though the direct write-off method violates the matching principle, its use can be justified when the amount of bad debt expense is immaterial when compared to other amounts on the income statement such Course-wide Content MH Enhanced Cartridge Sample Study Guide Working Paper Sample Generic Working Papers Student ALEKS Video Library Cogg Hill Practice Set Student Learning Tools NetTutor Appendices Text Updates Tech Support Chapter 9 Quizzes Interactive Quiz A Interactive Quiz B
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This note was uploaded on 08/01/2010 for the course ACC 101 taught by Professor Layvand during the Spring '09 term at Thomas Edison State.

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9 Interactive Quiz B - Interactive Quiz B Home > Chapter 9...

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