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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 shortterm 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 zerointerestbearing note. a 30. Calculate present value of a zerointerestbearing 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 writeoff under the allowance method. d 46. Determine balance in the Allowance for Doubtful Accounts. c 47. Determine interest revenue of a zerointerestbearing note. c 48. Determine interest receivable at year end. b 49. Assignment and factoring of accounts receivable....
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This note was uploaded on 06/13/2011 for the course ACCT 251 taught by Professor Johnson during the Spring '11 term at Bellevue.
 Spring '11
 johnson

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