Financial Accounting 2301sum08

Financial Accounting 2301sum08 - Financial Accounting 2301...

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Financial Accounting 2301 Northeast College Name_______________________ Date________________________ MULTIPLE CHOICE 1. A note receivable due in 18 months is listed on the balance sheet under the caption a. long-term liabilities b. fixed assets c. current assets d. investments 2. The receivable that is usually evidenced by a formal instrument of credit is a(n) a. trade receivable. b. note receivable. c. accounts receivable. d. income tax receivable. 3. Which of the following receivables would not be classified as an "other receivable”? a. Advance to an employee b. Interest receivable c. Refundable income tax d. Notes receivable
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4. Notes or accounts receivables that result from sales transactions are often called a. non-trade receivables. b. trade receivables. c. merchandise receivables. d. sales receivables. 5. The two methods of accounting for uncollectible receivables are the allowance method and the a. equity method b. direct write-off method c. interest method d. cost method 6. The direct write-off method of accounting for uncollectible accounts a. emphasizes balance sheet relationships. b. is not generally accepted as a basis for estimating bad debts. c. emphasizes cash realizable value. d. emphasizes the matching of expenses with revenues. 7. Under the direct write-off method of accounting for uncollectible accounts, Bad Debts Expense is debited a. at the end of each accounting period. b. when a credit sale is past due. c. whenever a pre-determined amount of credit sales have been made. d. when an account is determined to be worthless.
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8. An alternative name for Bad Debts Expense is a. Collection Expense. b. Credit Loss Expense. c. Uncollectible Accounts Expense. d. Deadbeat Expense. 9. Two methods of accounting for uncollectible accounts are the a. direct write-off method and the allowance method. b. allowance method and the accrual method. c. allowance method and the net realizable method. d. direct write-off method and the accrual method. 10. If the direct write-off method of accounting for uncollectible receivables is used, what general ledger account is debited to write off a customer's account as uncollectible? a. Uncollectible Accounts Payable b. Accounts Receivable c. Allowance for Doubtful Accounts d. Bad Debt Expense 11. If the direct write-off method of accounting for uncollectible receivables is used, what general ledger account is credited to write off a customer's account as uncollectible? a. Uncollectible Accounts Expense b. Accounts Receivable c. Allowance for Doubtful Accounts d. Interest Expense
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12. One of the weaknesses of the direct write-off method is that it a. understates accounts receivable on the balance sheet b. violates the matching principle c. is too difficult to use for many companies d. is based on estimates 13. A 90-day, 12% note for $10,000, dated May 1, is received from a customer on account. The maturity value of the note is a. $10,000 b. $10,300 c. $450 d. $9,550 14. Receivables are usually listed on the balance sheet after Cash in what order? a.
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This note was uploaded on 05/08/2011 for the course ACCT 2301 taught by Professor Moore,j during the Spring '08 term at HCCS.

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Financial Accounting 2301sum08 - Financial Accounting 2301...

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