The major differences between unclassified and

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ACCT 701 Module 2 Assessment 2 Review 2018.docx

The major differences between unclassified and classified income statements are from ACCT 701 at Louisiana State University, Shreveport

Question 4   The major differences between unclassified and classified income statements are Select one :
a . An unclassified income statement only has two categories — revenues and expenses . A classified income statement divides both revenues and expenses into operating and non-operating items .
b . None of these .
c . An unclassified income statement is made available to the public , while a classified income statement is private .
d . There is no real difference . The terminology depends upon the company 's industry classification .
e . A classified income statement only has two categories — revenues and expenses . An unclassified income statement divides both revenues and expenses into operating and non-operating items .
Answer:  a .   An unclassified income statement only has two categories — revenues and expenses . A classified income statement divides both revenues and expenses into operating and non-operating items .
Question 5   Gross margin percentage is calculated by Select one :
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Question 6   Current liabilities are obligations that : Select one :
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Question 7   Dividing net credit sales , or net sales , by average net accounts receivable yields : Select one :
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Question 8   Which of the following statements is false ? Select one :
a . The Allowance for Uncollectible Accounts reduces accounts receivable to their net realizable value .
b . The percentage - of - receivables method may use either an overall rate or a different rate for each age category .
c . None of these .
d . A write - off of an account reduces the net amount shown for accounts receivable on the balance sheet .
e . Any existing balance in the Allowance for Uncollectible Accounts is ignored in calculating the uncollectible accounts expense under the percentage - of - sales method except that the allowance account must have a credit balance after adjustment .
Answer:  e .   Any existing balance in the Allowance for Uncollectible Accounts is ignored in calculating the uncollectible accounts expense under the percentage - of - sales method except that the allowance account must have a credit balance after adjustment .
Question 9   Hunt Company estimates uncollectible accounts using the percentage - of - receivables method and expects that 5 percent of outstanding receivables will be uncollectible for 2014 . The balance in Accounts Receivable is $ 200,000 , and the allowance account has a $ 3,000 credit balance before adjustment at year - end . The uncollectible accounts expense for 2014 will be : Select one :
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Question 4The major differences between unclassified and classified income statements areSelect one:a. An unclassified income statement only has two categories—revenues and expenses. A classified income statement divides both revenues and expenses into operating and non-operating items.b. None of these.c. An unclassified income statement is made available to the public, while a classified income statement is private.d. There is no real difference. The terminology depends upon the company's industry classification.e. A classified income statement only has two categories—revenues and expenses. An unclassified income statement divides both revenues and expenses into operating and non-operating items.
Question 5Gross margin percentage is calculated by
Question 6Current liabilities are obligations that:

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