Question 1

A sale and its associated receivable are recorded only when the order, shipping, and billing documents are all present.

Accepted Answer

A) True 
 B)False

Question 2

A company had beginning accounts receivable of $175,000. All sales were on account and totaled $550,000. Cash collected from customers totaled $650,000. Calculate the ending accounts receivable balance.

Accepted Answer

A) $725,000 
B) $275,000 
C) $ 75,000 
D) $175,000 
A) $725,000 
B) $275,000 
C) $ 75,000 
D) $175,000

Question 3

Match each statement to the item listed below
a.Accounts receivable
e.Notes receivable
b.Aging method
f.Realized
c.Allowance for Doubtful Accounts
g.Securitization
d.Earned
-A contra-asset account.

Accepted Answer

The answer of Match each statement to the item listed...

Question 4

Net Sales = Total credit sales - Sales Discounts - Sales Returns and Allowances

Accepted Answer

A) True 
 B)False

Question 5

Match each statement to the item listed below
a.Bank credit card
c.Sears card
b.Debit card
d.American Express
-Results in an immediate electronic withdrawal from the owner's bank account when used.

Accepted Answer

The answer of Match each statement to the item listed...

Question 6

The direct write-off method does a better job of matching revenues and expenses.ANS: C PTS: 1 DIF: Difficulty: Moderate
OBJ: LO: 5-1 NAT: BUSPROG: Analytic
STA: AICPA FN-Measurement | ACBSP-APC-12-Receivables Reporting
KEY: Bloom's: Knowledge NOT: 3 min.A2Z Events
The following data are from the company's records for 2013:
  
-Refer to A2Z Events. What are the effects on the accounting equation when the company writes off a bad debt under the allowance method?

Accepted Answer

A) Assets decrease and stockholders' equity increase 
B) Assets and stockholders' equity decrease 
C) Assets increase and stockholders' equity decreases 
D) No effect on overall assets or stockholders' equity 
A) Assets decrease and stockholders' equity increase 
B) Assets and stockholders' equity decrease 
C) Assets increase and stockholders' equity decreases 
D) No effect on overall assets or stockholders' equity

Question 7

The following data are from the company's records for 2013:
  
-Refer to A&B Foods. If the company uses the aging of accounts receivable method to estimate its bad debts, what will be the net realizable value of its accounts receivable after the adjustment for bad debt expense?

Accepted Answer

A) $343,000 
B) $345,000 
C) $420,000 
D) $395,000 
A) $343,000 
B) $345,000 
C) $420,000 
D) $395,000

Question 8

The following comparative financial statements for the years ended December 31, 2013 and 2012 are provided for Air Plus Company:
   Answer these questions concerning the company's receivables:

Accepted Answer

The answer of The following comparative financial statements for the...

Question 9

What is the purpose of an aging schedule for accounts receivable?

Accepted Answer

An aging schedule categorizes the variou

Question 10

The amount of money borrowed when a promissory note is issued is called the ____________________.

Accepted Answer

principal

Question 11

What should a company do to improve its accounts receivable turnover rate?

Accepted Answer

A) Lower its selling prices. 
B) Increase its sales force. 
C) Give customers credit terms of 2/10, n/30 rather than 1/10, n/30. 
D) Reduce the number of employees working in the credit department. 
A) Lower its selling prices. 
B) Increase its sales force. 
C) Give customers credit terms of 2/10, n/30 rather than 1/10, n/30. 
D) Reduce the number of employees working in the credit department.

Question 12

Beginning accounts receivable were $200,000 and ending accounts receivable were $300,000. Assuming cash collections totaled $1,100,000, what were credit sales?

Accepted Answer

A) $1,200,000 
B) $1,100,000 
C) $1,300,000 
D) $1,500,000 
A) $1,200,000 
B) $1,100,000 
C) $1,300,000 
D) $1,500,000

Question 13

If a company uses the direct write-off method of accounting for bad debts,

Accepted Answer

A) It establishes an estimate for the allowance for doubtful accounts. 
B) It will record bad debt expense only when an account is determined to be uncollected. 
C) It will reduce the accounts receivable account at the end of the accounting period for estimated uncollected accounts. 
D) When an account is written off, total assets will stay the same. 
A) It establishes an estimate for the allowance for doubtful accounts. 
B) It will record bad debt expense only when an account is determined to be uncollected. 
C) It will reduce the accounts receivable account at the end of the accounting period for estimated uncollected accounts. 
D) When an account is written off, total assets will stay the same.

Question 14

Select the term that matches each of the following descriptions.
a.Sales Discount
b.Trade Discount
c.Sales Allowance
d.Sales Returns
-Used to encourage prompt payment

Accepted Answer

The answer of Select the term that matches each of...

Question 15

A(n)____________________ is the buyer of receivables, who acquires the right to collect the receivables and assumes the risk of uncollectibility.

Accepted Answer

The answer of A(n)____________________ is the buyer of receivables, who...

Question 16

How will the lender of the promissory note record the note on its books?

Accepted Answer

A) The promissory note will be recorded as an asset. 
B) The promissory note will be recorded as a contra asset. 
C) The promissory note will be recorded as revenue. 
D) The promissory note will be recorded as an expense. 
A) The promissory note will be recorded as an asset. 
B) The promissory note will be recorded as a contra asset. 
C) The promissory note will be recorded as revenue. 
D) The promissory note will be recorded as an expense.

Question 17

You Decide Essay
You are the credit manager at a large retail department store. What steps should you take before deciding to write off a customer's account?

Accepted Answer

After giving customers a grace period, y

Question 18

The following data are from the company's records for 2013:
  
-Refer to the Ace Computing Company. The entry required to recognize the bad debts expense for 2013 will act to

Accepted Answer

A) increase total assets and retained earnings. 
B) decrease total assets and retained earnings. 
C) decrease total assets and increase net income. 
D) increase total assets and decrease net income. 
A) increase total assets and retained earnings. 
B) decrease total assets and retained earnings. 
C) decrease total assets and increase net income. 
D) increase total assets and decrease net income.

Question 19

Match each statement to the item listed below
a.Accounts receivable
e.Notes receivable
b.Aging method
f.Realized
c.Allowance for Doubtful Accounts
g.Securitization
d.Earned
-Indicates that non-cash resources have been exchanged for cash.

Accepted Answer

The answer of Match each statement to the item listed...

Question 20

Match each statement to the item listed below
a.Bad debt expense
d.Percentage of credit sales
b.Net sales revenue
e.Profitability ratios
c.Nontrade receivables
f.Trade receivables
-Money due from customers purchasing inventory in the ordinary course of business

Accepted Answer

The answer of Match each statement to the item listed...

A sale and its associated receivable are recorded only when the order, shipping, and billing documents are all present.

A company had beginning accounts receivable of $175,000. All sales were on account and totaled $550,000. Cash collected from customers totaled $650,000. Calculate the ending accounts receivable balance.

Match each statement to the item listed below a.Accounts receivable e.Notes receivable b.Aging method f.Realized c.Allowance for Doubtful Accounts g.Securitization d.Earned -A contra-asset account.

Net Sales = Total credit sales - Sales Discounts - Sales Returns and Allowances

Match each statement to the item listed below a.Bank credit card c.Sears card b.Debit card d.American Express -Results in an immediate electronic withdrawal from the owner's bank account when used.

The following data are from the company's records for 2013: -Refer to A&B Foods. If the company uses the aging of accounts receivable method to estimate its bad debts, what will be the net realizable value of its accounts receivable after the adjustment for bad debt expense?

The following comparative financial statements for the years ended December 31, 2013 and 2012 are provided for Air Plus Company: Answer these questions concerning the company's receivables:

What is the purpose of an aging schedule for accounts receivable?

The amount of money borrowed when a promissory note is issued is called the ____________________.

What should a company do to improve its accounts receivable turnover rate?

Beginning accounts receivable were $200,000 and ending accounts receivable were $300,000. Assuming cash collections totaled $1,100,000, what were credit sales?

If a company uses the direct write-off method of accounting for bad debts,

Select the term that matches each of the following descriptions. a.Sales Discount b.Trade Discount c.Sales Allowance d.Sales Returns -Used to encourage prompt payment

A(n)____________________ is the buyer of receivables, who acquires the right to collect the receivables and assumes the risk of uncollectibility.

How will the lender of the promissory note record the note on its books?

You Decide Essay You are the credit manager at a large retail department store. What steps should you take before deciding to write off a customer's account?

The following data are from the company's records for 2013: -Refer to the Ace Computing Company. The entry required to recognize the bad debts expense for 2013 will act to

Match each statement to the item listed below a.Accounts receivable e.Notes receivable b.Aging method f.Realized c.Allowance for Doubtful Accounts g.Securitization d.Earned -Indicates that non-cash resources have been exchanged for cash.

Match each statement to the item listed below a.Bad debt expense d.Percentage of credit sales b.Net sales revenue e.Profitability ratios c.Nontrade receivables f.Trade receivables -Money due from customers purchasing inventory in the ordinary course of business

Accounting and the Financial Statements

The Accounting Information System

Accrual Accounting

Internal Control and Cash

Cost of Goods Sold and Inventory

Operating Assets

Current and Contingent Liabilities

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Investments

Time Value of Money

Filters

Exam 5: Sales and Receivables

A sale and its associated receivable are recorded only when the order, shipping, and billing documents are all present.

A company had beginning accounts receivable of $175,000. All sales were on account and totaled $550,000. Cash collected from customers totaled $650,000. Calculate the ending accounts receivable balance.

Match each statement to the item listed below a.Accounts receivable e.Notes receivable b.Aging method f.Realized c.Allowance for Doubtful Accounts g.Securitization d.Earned -A contra-asset account.

Net Sales = Total credit sales - Sales Discounts - Sales Returns and Allowances

Match each statement to the item listed below a.Bank credit card c.Sears card b.Debit card d.American Express -Results in an immediate electronic withdrawal from the owner's bank account when used.

The following data are from the company's records for 2013: -Refer to A&B Foods. If the company uses the aging of accounts receivable method to estimate its bad debts, what will be the net realizable value of its accounts receivable after the adjustment for bad debt expense?

The following comparative financial statements for the years ended December 31, 2013 and 2012 are provided for Air Plus Company: Answer these questions concerning the company's receivables:

What is the purpose of an aging schedule for accounts receivable?

The amount of money borrowed when a promissory note is issued is called the ____________________.

What should a company do to improve its accounts receivable turnover rate?

Beginning accounts receivable were $200,000 and ending accounts receivable were $300,000. Assuming cash collections totaled $1,100,000, what were credit sales?

If a company uses the direct write-off method of accounting for bad debts,

Select the term that matches each of the following descriptions. a.Sales Discount b.Trade Discount c.Sales Allowance d.Sales Returns -Used to encourage prompt payment

A(n)____________________ is the buyer of receivables, who acquires the right to collect the receivables and assumes the risk of uncollectibility.

How will the lender of the promissory note record the note on its books?

You Decide Essay You are the credit manager at a large retail department store. What steps should you take before deciding to write off a customer's account?

The following data are from the company's records for 2013: -Refer to the Ace Computing Company. The entry required to recognize the bad debts expense for 2013 will act to

Match each statement to the item listed below a.Accounts receivable e.Notes receivable b.Aging method f.Realized c.Allowance for Doubtful Accounts g.Securitization d.Earned -Indicates that non-cash resources have been exchanged for cash.

Match each statement to the item listed below a.Bad debt expense d.Percentage of credit sales b.Net sales revenue e.Profitability ratios c.Nontrade receivables f.Trade receivables -Money due from customers purchasing inventory in the ordinary course of business

Accounting and the Financial Statements

The Accounting Information System

Accrual Accounting

Internal Control and Cash

Cost of Goods Sold and Inventory

Operating Assets

Current and Contingent Liabilities

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Investments

Time Value of Money

Filters