Question 1

If accounts receivable turnover is faster, this means that fewer days are required to collect receivables.

Accepted Answer

A) True 
 B)False

Question 2

The amount of cash the maker is to pay the payee on the maturity date of the note is called the ____________________.

Accepted Answer

The answer of The amount of cash the maker is...

Question 3

Cushion Sports accepted a credit card account receivable in exchange for $5,000 of services provided to a customer.The credit card company charges a 5% service charge.Recording the transaction in the company's accounting records will have what effect on the accounting equation?

Accepted Answer

A)  Increase assets and equity by $4,750 
B)  Decrease assets and equity by $250 
C)  Increase assets by $5,000 
D)  Increase equity by $5,000 
A)  Increase assets and equity by $4,750 
B)  Decrease assets and equity by $250 
C)  Increase assets by $5,000 
D)  Increase equity by $5,000

Question 4

The alternate term for a credit card draft is an invoice.

Accepted Answer

A) True 
 B)False

Question 5

When a company discounts an interest-bearing note at a bank with recourse:

Accepted Answer

A)  The company is assured payment at maturity. 
B)  The company will receive the full amount of the note plus interest. 
C)  The company has a contingent liability from the time the note is discounted until its maturity date. 
D)  The bank assumes the credit risk on non-payment at the maturity date. 
A)  The company is assured payment at maturity. 
B)  The company will receive the full amount of the note plus interest. 
C)  The company has a contingent liability from the time the note is discounted until its maturity date. 
D)  The bank assumes the credit risk on non-payment at the maturity date.

Question 6

Match the following definitions with their appropriate terms .
-Note payable

Accepted Answer

A) A liability resulting from the signing of a 
B) A measure of how long it takes to collect receivables. promissory note. 
C) A written promise to repay a definite sum of 
D) The length of time a note is outstanding, that is, the money on demand or at a fixed or determinable period of time between the date it is issued and the date date in the future. it matures. 
E) The party that will receive the money from a
F)The process of selling a promissory note. promissory note at some future date.
G)The date the promissory note is due.
H)The amount of cash the maker is to pay the payee on the maturity date of the note.
I)The difference between the principal amount of
J)An asset resulting from the acceptance of a promissory the note and its maturity value. note from another company.
K)Securities issued by corporations and
L)Securities issued by corporations as a form of ownership governmental bodies as a form of borrowing. in the business.
M)The party that agrees to repay the money for a
N)The amount of cash received, or the fair value of the promissory note at some future date. products or services received, by the maker when a promissory note is issued. 
A) A liability resulting from the signing of a 
B) A measure of how long it takes to collect receivables. promissory note. 
C) A written promise to repay a definite sum of 
D) The length of time a note is outstanding, that is, the money on demand or at a fixed or determinable period of time between the date it is issued and the date date in the future. it matures. 
E) The party that will receive the money from a
F)The process of selling a promissory note. promissory note at some future date.
G)The date the promissory note is due.
H)The amount of cash the maker is to pay the payee on the maturity date of the note.
I)The difference between the principal amount of
J)An asset resulting from the acceptance of a promissory the note and its maturity value. note from another company.
K)Securities issued by corporations and
L)Securities issued by corporations as a form of ownership governmental bodies as a form of borrowing. in the business.
M)The party that agrees to repay the money for a
N)The amount of cash received, or the fair value of the promissory note at some future date. products or services received, by the maker when a promissory note is issued.

Question 7

If a company accepts a major credit card such as VISA from a customer, then the company is responsible for the amount of the sale in a case of nonpayment from a cardholder.

Accepted Answer

A) True 
 B)False

Question 8

Match the following definitions with their appropriate terms .
-Aging schedule

Accepted Answer

A) A receivable arising from the sale of goods or services 
B) A form used to categorize the various individual with a verbal promise to pay. accounts receivable according to the length of time each has been outstanding. 
C) A method of estimating bad debts on the basis of either 
D) A measure of the number of times receivables are the net credit sales of the period or the accounts collected in a period. receivable at the end of the period. 
E) The general ledger account that is supported by a
F)A contra-asset account used to reduce accounts subsidiary ledger. receivable to its net realizable value.
G)The detail for a number of individual items that
H)The recognition of bad debts expense at the point an collectively make up a single general ledger account. account is written off as uncollectible. 
A) A receivable arising from the sale of goods or services 
B) A form used to categorize the various individual with a verbal promise to pay. accounts receivable according to the length of time each has been outstanding. 
C) A method of estimating bad debts on the basis of either 
D) A measure of the number of times receivables are the net credit sales of the period or the accounts collected in a period. receivable at the end of the period. 
E) The general ledger account that is supported by a
F)A contra-asset account used to reduce accounts subsidiary ledger. receivable to its net realizable value.
G)The detail for a number of individual items that
H)The recognition of bad debts expense at the point an collectively make up a single general ledger account. account is written off as uncollectible.

Question 9

The length of time a note is outstanding (that is, the period of time between the date it is issued and the date it matures) is called the ____________________.

Accepted Answer

term
matur

Question 10

For each item listed below, identify how it will be reported on the Statement of Cash Flows under the indirect method.
-Write-off of a customer's account receivable under the allowance method

Accepted Answer

A) Operating activity 
B) Investing activity 
C) Financing activity 
D) Not reported separately on the cash flow statement 
A) Operating activity 
B) Investing activity 
C) Financing activity 
D) Not reported separately on the cash flow statement

If accounts receivable turnover is faster, this means that fewer days are required to collect receivables.

The amount of cash the maker is to pay the payee on the maturity date of the note is called the ____________________.

Cushion Sports accepted a credit card account receivable in exchange for $5,000 of services provided to a customer.The credit card company charges a 5% service charge.Recording the transaction in the company's accounting records will have what effect on the accounting equation?

The alternate term for a credit card draft is an invoice.

When a company discounts an interest-bearing note at a bank with recourse:

Match the following definitions with their appropriate terms . -Note payable

If a company accepts a major credit card such as VISA from a customer, then the company is responsible for the amount of the sale in a case of nonpayment from a cardholder.

Match the following definitions with their appropriate terms . -Aging schedule

The length of time a note is outstanding (that is, the period of time between the date it is issued and the date it matures) is called the ____________________.

For each item listed below, identify how it will be reported on the Statement of Cash Flows under the indirect method. -Write-off of a customer's account receivable under the allowance method

Accounting As a Form of Communication

Financial Statements and the Annual Report

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Operating Assets: Property, Plant and Equipment, and Intangibles

Current Liabilities, Contingencies, and the True Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Exploring Accounting Standards and Differences around the World

Filters

Exam 7: Receivables and Investments

If accounts receivable turnover is faster, this means that fewer days are required to collect receivables.

The amount of cash the maker is to pay the payee on the maturity date of the note is called the ____________________.

Cushion Sports accepted a credit card account receivable in exchange for $5,000 of services provided to a customer.The credit card company charges a 5% service charge.Recording the transaction in the company's accounting records will have what effect on the accounting equation?

The alternate term for a credit card draft is an invoice.

When a company discounts an interest-bearing note at a bank with recourse:

Match the following definitions with their appropriate terms . -Note payable

If a company accepts a major credit card such as VISA from a customer, then the company is responsible for the amount of the sale in a case of nonpayment from a cardholder.

Match the following definitions with their appropriate terms . -Aging schedule

The length of time a note is outstanding (that is, the period of time between the date it is issued and the date it matures) is called the ____________________.

For each item listed below, identify how it will be reported on the Statement of Cash Flows under the indirect method. -Write-off of a customer's account receivable under the allowance method

Accounting As a Form of Communication

Financial Statements and the Annual Report

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Operating Assets: Property, Plant and Equipment, and Intangibles

Current Liabilities, Contingencies, and the True Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Exploring Accounting Standards and Differences around the World

Filters