Quiz7A - IntermediateAccounting1(3367)Chapter7QuizFall2010...

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Intermediate Accounting 1 (3367) Chapter 7 Quiz Fall 2010… 1. 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. 2. The net amount reported for short-term receivables is not affected when a specific  account receivable is determined to be uncollectible. a. True b. False 3. Cash equivalents are investments with original maturities of nine months or less. a. True b. False 4. If   a   company   employs   the   gross   method   of   recording   accounts   receivable   from  customers, then sales discounts taken should be reported as a.   an item of "other expense" in the income statement. b.    a deduction from sales in the income statement. c.   a deduction from accounts receivable in determining the net realizable value        of accounts receivable. d.   sales discounts forfeited in the cost of goods sold section of the income 
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Quiz7A - IntermediateAccounting1(3367)Chapter7QuizFall2010...

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