Question 1

Once an Account Receivable is written off,can a business ever collect that money?

Accepted Answer

A) No,GAAP does not allow a company to collect any amounts from a customer who has had an account written off. 
B) Only when using the direct write-off method can a company collect from a customer who has had an account written off. 
C) Only when using the allowance method can a company collect from a customer who has had an account written off. 
D) Both the allowance and direct write-off methods permit a company to collect from a customer who has had an account written off. 
A) No,GAAP does not allow a company to collect any amounts from a customer who has had an account written off. 
B) Only when using the direct write-off method can a company collect from a customer who has had an account written off. 
C) Only when using the allowance method can a company collect from a customer who has had an account written off. 
D) Both the allowance and direct write-off methods permit a company to collect from a customer who has had an account written off.

Question 2

A retailer has 5% credit/debit card service fees deducted from the business's bank account on a monthly basis.The retailer has $43,500 in sales for the month.The journal entry to record these sales would be to:

Accepted Answer

A) debit Sales for $43,500 and credit Cash for $43,500. 
B) debit Cash for $43,500 and credit Sales for $43,500. 
C) debit Cash for $41,325,debit Service Fee Expense for $2,175 and credit Sales for $43,500. 
D) debit Cash for $43,500,credit Sales for $41,325 and credit Service Fee Expense for $2,175. 
A) debit Sales for $43,500 and credit Cash for $43,500. 
B) debit Cash for $43,500 and credit Sales for $43,500. 
C) debit Cash for $41,325,debit Service Fee Expense for $2,175 and credit Sales for $43,500. 
D) debit Cash for $43,500,credit Sales for $41,325 and credit Service Fee Expense for $2,175.

Question 3

Most financial institutions charge the retailer a service fee that enables the retailer to accept the credit cards as payment on merchandise.

Accepted Answer

A) True 
 B)False

Question 4

Notes receivable generally include a charge for interest.

Accepted Answer

A) True 
 B)False

Question 5

Quick assets include cash,Accounts Receivable,and prepaid expenses.

Accepted Answer

A) True 
 B)False

Question 6

Valdez Company reported sales of $343,000;beginning net Accounts Receivable of $89,000 and ending
Net Accounts Receivable of $111,000.Valdez Company's Accounts Receivable turnover is:

Accepted Answer

A) 4)61. 
B) 3)85. 
C) 3)43. 
D) 3)09. 
A) 4)61. 
B) 3)85. 
C) 3)43. 
D) 3)09.

Question 7

Under the allowance method,to record the receipt of cash after an account has previously being written off,you would first:

Accepted Answer

A) debit Cash and credit the customer's account. 
B) reinstate the customer's account. 
C) debit Allowance for Doubtful Accounts. 
D) debit Bad Debt Expense. 
A) debit Cash and credit the customer's account. 
B) reinstate the customer's account. 
C) debit Allowance for Doubtful Accounts. 
D) debit Bad Debt Expense.

Question 8

Aspen Inc.has a petty cash fund of $200.At the end of the month,$6.41 remains in the fund along with $190.96 in various receipts.The journal entry to replenish the fund would show a debit(s)to:

Accepted Answer

A) various expenses for $190.96 and Cash Short of $2.63. 
B) various expenses for $190.96 and Cash Over of $2.63. 
C) Cash for $190.96. 
D) Cash for $193.59. 
A) various expenses for $190.96 and Cash Short of $2.63. 
B) various expenses for $190.96 and Cash Over of $2.63. 
C) Cash for $190.96. 
D) Cash for $193.59.

Question 9

When using the aging method,the amount calculated to be the uncollectible accounts is always the amount used for the adjusting entry at the end of the period.

Accepted Answer

A) True 
 B)False

Question 10

On September 1,2013,Sharp Corp.lent $2,400 to Marla Smith on a 6-month 8% promissory note.The amount of interest to be accrued on December 31 will be:

Accepted Answer

A) $192. 
B) $128. 
C) $96. 
D) $64. 
A) $192. 
B) $128. 
C) $96. 
D) $64.

Question 11

Cash consists of anything that a bank will take as a deposit.

Accepted Answer

A) True 
 B)False

Question 12

Which is NOT a benefit to extending credit to customers?

Accepted Answer

A) Bad debt expenses 
B) Increased revenues 
C) Increased profits 
D) Wider range of customers 
A) Bad debt expenses 
B) Increased revenues 
C) Increased profits 
D) Wider range of customers

Question 13

A petty cash fund is established by making a check payable to Petty Cash,cashing the check,and placing the funds in the cash register.

Accepted Answer

A) True 
 B)False

Question 14

A company with a current ratio of 2.75 means that the company:

Accepted Answer

A) has $2.75 of quick assets to pay each $1 of current liabilities. 
B) has $2.75 of current assets to pay each $1 of current liabilities. 
C) has $1.00 of quick assets for every $2.75 of current liabilities. 
D) has $1.00 of current assets for every $2.75 of current liabilities. 
A) has $2.75 of quick assets to pay each $1 of current liabilities. 
B) has $2.75 of current assets to pay each $1 of current liabilities. 
C) has $1.00 of quick assets for every $2.75 of current liabilities. 
D) has $1.00 of current assets for every $2.75 of current liabilities.

Question 15

Credit sales are the most desirable form of sales.

Accepted Answer

A) True 
 B)False

Question 16

Once the merchandise is received from the supplier,the company:

Accepted Answer

A) issues an invoice. 
B) issues a check. 
C) issues a purchase order. 
D) completes a receiving report. 
A) issues an invoice. 
B) issues a check. 
C) issues a purchase order. 
D) completes a receiving report.

Question 17

A company with 5.6 Accounts Receivable turnover means that the company:

Accepted Answer

A) has a good Accounts Receivable turnover. 
B) has a bad Accounts Receivable turnover. 
C) needs to tighten its credit terms. 
D) cannot be determined from the information provided. 
A) has a good Accounts Receivable turnover. 
B) has a bad Accounts Receivable turnover. 
C) needs to tighten its credit terms. 
D) cannot be determined from the information provided.

Question 18

MasterCard and Visa sales are treated like cash sales.

Accepted Answer

A) True 
 B)False

Question 19

GAAP generally allows the direct write-off method for accounting for bad debts.

Accepted Answer

A) True 
 B)False

Question 20

A company with an Accounts Receivable turnover of 11.78 would be collecting its receivables about:

Accepted Answer

A) once a week. 
B) once a month. 
C) once a quarter. 
D) once a year. 
A) once a week. 
B) once a month. 
C) once a quarter. 
D) once a year.

Once an Account Receivable is written off,can a business ever collect that money?

A retailer has 5% credit/debit card service fees deducted from the business's bank account on a monthly basis.The retailer has $43,500 in sales for the month.The journal entry to record these sales would be to:

Most financial institutions charge the retailer a service fee that enables the retailer to accept the credit cards as payment on merchandise.

Notes receivable generally include a charge for interest.

Quick assets include cash,Accounts Receivable,and prepaid expenses.

Valdez Company reported sales of $343,000;beginning net Accounts Receivable of $89,000 and ending Net Accounts Receivable of $111,000.Valdez Company's Accounts Receivable turnover is:

Under the allowance method,to record the receipt of cash after an account has previously being written off,you would first:

Aspen Inc.has a petty cash fund of $200.At the end of the month,$6.41 remains in the fund along with $190.96 in various receipts.The journal entry to replenish the fund would show a debit(s)to:

When using the aging method,the amount calculated to be the uncollectible accounts is always the amount used for the adjusting entry at the end of the period.

On September 1,2013,Sharp Corp.lent $2,400 to Marla Smith on a 6-month 8% promissory note.The amount of interest to be accrued on December 31 will be:

Cash consists of anything that a bank will take as a deposit.

Which is NOT a benefit to extending credit to customers?

A petty cash fund is established by making a check payable to Petty Cash,cashing the check,and placing the funds in the cash register.

A company with a current ratio of 2.75 means that the company:

Credit sales are the most desirable form of sales.

Once the merchandise is received from the supplier,the company:

A company with 5.6 Accounts Receivable turnover means that the company:

MasterCard and Visa sales are treated like cash sales.

GAAP generally allows the direct write-off method for accounting for bad debts.

A company with an Accounts Receivable turnover of 11.78 would be collecting its receivables about:

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Accounting for a Merchandising Business

Inventory

The Challenges of Accounting: Standards, internal Control, audits, fraud, and Ethics

Long-Term and Other Assets

Current Liabilities and Long-Term Debt

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

Financial Statement Analysis

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Exam 7: Cash and Receivables

Once an Account Receivable is written off,can a business ever collect that money?

A retailer has 5% credit/debit card service fees deducted from the business's bank account on a monthly basis.The retailer has $43,500 in sales for the month.The journal entry to record these sales would be to:

Most financial institutions charge the retailer a service fee that enables the retailer to accept the credit cards as payment on merchandise.

Notes receivable generally include a charge for interest.

Quick assets include cash,Accounts Receivable,and prepaid expenses.

Valdez Company reported sales of $343,000;beginning net Accounts Receivable of $89,000 and ending Net Accounts Receivable of $111,000.Valdez Company's Accounts Receivable turnover is:

Under the allowance method,to record the receipt of cash after an account has previously being written off,you would first:

Aspen Inc.has a petty cash fund of $200.At the end of the month,$6.41 remains in the fund along with $190.96 in various receipts.The journal entry to replenish the fund would show a debit(s)to:

When using the aging method,the amount calculated to be the uncollectible accounts is always the amount used for the adjusting entry at the end of the period.

On September 1,2013,Sharp Corp.lent $2,400 to Marla Smith on a 6-month 8% promissory note.The amount of interest to be accrued on December 31 will be:

Cash consists of anything that a bank will take as a deposit.

Which is NOT a benefit to extending credit to customers?

A petty cash fund is established by making a check payable to Petty Cash,cashing the check,and placing the funds in the cash register.

A company with a current ratio of 2.75 means that the company:

Credit sales are the most desirable form of sales.

Once the merchandise is received from the supplier,the company:

A company with 5.6 Accounts Receivable turnover means that the company:

MasterCard and Visa sales are treated like cash sales.

GAAP generally allows the direct write-off method for accounting for bad debts.

A company with an Accounts Receivable turnover of 11.78 would be collecting its receivables about:

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Accounting for a Merchandising Business

Inventory

The Challenges of Accounting: Standards, internal Control, audits, fraud, and Ethics

Long-Term and Other Assets

Current Liabilities and Long-Term Debt

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

Financial Statement Analysis

Filters