Chapter 7 - Chapter 7 1 Cash consists of all of the...

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Chapter 7 1. Cash consists of all of the following except: A. bank drafts. B. certified checks. C. money orders. D. money market funds. 2. The minimum cash amounts that banks often require customers to whom they lend money to maintain in checking accounts is called: A. bank overdrafts. B. cash equivalents. C. compensating balances. D. money market funds. 3. An example of a cash equivalent is: A. cashier's checks. B. certificates of deposit. C. money market savings certificates. D. treasury bills. 4. Receivables may be classified as all of following except: A. current or noncurrent. B. accounts receivable or notes receivable. C. restricted or unrestricted. D. trade receivables or nontrade receivables. 5. In the gross method of recording cash discounts, sales discounts are: A. recorded at the time of sale. B. recorded when payment is received within the discount period. C. never recorded. D. ignored unless they are material in amount. 6. Short-term receivables are valued and reported at their: A. present value. B. face value. C. gross realizable value. D. net realizable value. 7. The percentage-of-sales method for estimating uncollectibles is often referred to as the: A. aging method. B. balance sheet approach. C. direct write-off method. D. income statement approach. 8. The balance in Allowance for Doubtful Accounts must be considered in computing Bad Debt Expense under the: A. direct write-off method. B. percentage-of-sales method. C. percentage-of-receivables method. D. percentage-of-sales and the percentage-of-receivables method.
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The balance in Allowance for Doubtful Accounts is considered only under the percentage-of-receivables method 9. Long-term notes receivable should be reported at their: A. face value. B. maturity value.
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This note was uploaded on 12/09/2011 for the course ACC 371 taught by Professor Proscott during the Spring '11 term at S. Alabama.

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Chapter 7 - Chapter 7 1 Cash consists of all of the...

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