Question 1

The account, "Allowance for Doubtful Accounts" is an expense account (the cost of making bad credit sales)that is reported on the income statement.

Accepted Answer

A) True 
 B)False

Question 2

All Star Auto has an accounts receivable balance after posting net collections from customers for 2013 of $180,000. The customers took advantage of sales discounts of $15,000. Management aged the accounts receivable and estimate for uncollected account percentages as follows:   The net realizable value of the accounts receivable is

Accepted Answer

A) $173,200 
B) $170,200 
C) $172,700 
D) $180,000 
A) $173,200 
B) $170,200 
C) $172,700 
D) $180,000

Question 3

Academy Grill Supply
On October 1, 2013, the company received a $50,000 promissory note from a customer. The annual interest rate is 6%. Principal and interest will be collected in cash at the maturity date of September 30, 2013.
-Refer to Absolute Appliances. What amount should the company recognize as interest revenue in 2013?

Accepted Answer

A) $ -0- 
B) $1,000 
C) $2,000 
D) $3,000 
A) $ -0- 
B) $1,000 
C) $2,000 
D) $3,000

Question 4

Accent Flooring
The company received a promissory note from a customer on March 1, 2013. The principal amount of the note is $20,000; the terms are 3 months and 9% annual interest
-Refer to the information for Accent Flooring. What is the total amount of interest the company will receive when the note is collected?

Accepted Answer

A) $ 300 
B) $ 150 
C) $ 450 
D) $1,800 
A) $ 300 
B) $ 150 
C) $ 450 
D) $1,800

Question 5

A company needs to record 6 months of accrued interest on a 4-year, 12%, $12,000 promissory note payable. How much interest expense should be accrued?

Accepted Answer

A) $2,160 
B) $1,440 
C) $1,080 
D) $720 
A) $2,160 
B) $1,440 
C) $1,080 
D) $720

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 amount will the company show on its year-end balance sheet for the net realizable value of its accounts receivable?

Accepted Answer

A) $410,000 
B) $285,000 
C) $340,000 
D) $355,000 
A) $410,000 
B) $285,000 
C) $340,000 
D) $355,000

Question 7

MATCHING
Select the term that matches each of the following descriptions.
a.Interest
b.Maturity Value
c.Principal
d.Lender
e.Factoring
f.Fraction of year
g.Maturity date
h.Implicit
i.Maker
-Date which the total interest and principal must be repaid

Accepted Answer

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

Question 8

The following data are from the company's records for 2013:
  
-Refer to the Ace Computing Company. The entry to recognize the write-off of the specific uncollected accounts will act to

Accepted Answer

A) increase total assets and stockholders' equity. 
B) increase total assets and decrease stockholders' equity. 
C) decrease total assets and stockholders' equity. 
D) not affect total assets or stockholders' equity. 
A) increase total assets and stockholders' equity. 
B) increase total assets and decrease stockholders' equity. 
C) decrease total assets and stockholders' equity. 
D) not affect total assets or stockholders' equity.

Question 9

The following data are from the company's records for 2013:
  
-Refer to A-One Construction. What is the balance of Accounts Receivable at December 31, 2013?

Accepted Answer

A) $545,000 
B) $440,000 
C) $515,000 
D) $530,000 
A) $545,000 
B) $440,000 
C) $515,000 
D) $530,000

Question 10

MATCHING
Select the term that matches each of the following descriptions.
a.Interest
b.Maturity Value
c.Principal
d.Lender
e.Factoring
f.Fraction of year
g.Maturity date
h.Implicit
i.Maker
-The difference between the principal amount of the note and its maturity value

Accepted Answer

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

Question 11

The accounts receivable turnover ratio is used to evaluate how well a company does in collecting its accounts receivable.

Accepted Answer

A) True 
 B)False

Question 12

MATCHING
Select the term that matches each of the following descriptions.
a.Interest
b.Maturity Value
c.Principal
d.Lender
e.Factoring
f.Fraction of year
g.Maturity date
h.Implicit
i.Maker
-The length of time a note is outstanding--the period of time between the date it is issued and the date the note is due to be paid

Accepted Answer

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

Question 13

On December 15, 2013, the accounts receivable balance was $50,000 and the balance in the allowance for doubtful accounts was $5,000. That morning, a $1,000 uncollected account was written-off. The net realizable value of accounts receivable immediately after the write-off is:

Accepted Answer

A) $49,000 
B) $46,000 
C) $45,000 
D) $44,000 
A) $49,000 
B) $46,000 
C) $45,000 
D) $44,000

Question 14

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
-A way to estimate bad debt expense.

Accepted Answer

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

Question 15

Match each statement to the item listed below
a.Bank credit card
c.Sears card
b.Debit card
d.American Express
-No service charge expense is incurred by the issuer when this card is used.

Accepted Answer

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

Question 16

Academy Grill Supply
On October 1, 2013, the company received a $50,000 promissory note from a customer. The annual interest rate is 6%. Principal and interest will be collected in cash at the maturity date of September 30, 2013.
-Refer to Academy Grill Supply. The effect on the company's financial statements on December 31, 2013 is as follows

Accepted Answer

A) assets and Stockholders' equity increase. 
B) assets and Stockholders' equity decrease. 
C) assets and liabilities increase. 
D) no net change in assets. 
A) assets and Stockholders' equity increase. 
B) assets and Stockholders' equity decrease. 
C) assets and liabilities increase. 
D) no net change in assets.

Question 17

The following data are from the company's records for 2013:
  
-Refer to Accelerated Solutions. If the aging method is used to estimate bad debts, what amount should be recorded as bad debt expense for 2013?

Accepted Answer

A) $50,000 
B) $ 5,000 
C) $15,000 
D) $25,000 
A) $50,000 
B) $ 5,000 
C) $15,000 
D) $25,000

Question 18

A sales invoice that bears the notation 2/10 means ____________________.

Accepted Answer

2% discoun

Question 19

Match each statement to the item listed below
a.Bank credit card
c.Sears card
b.Debit card
d.American Express
-A non-bank credit card.

Accepted Answer

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

Question 20

____________________ are receivables that generally specify an interest rate and a maturity date at which any interest and principal must be repaid.

Accepted Answer

The answer of ____________________ are receivables that generally specify an...

The account, "Allowance for Doubtful Accounts" is an expense account (the cost of making bad credit sales)that is reported on the income statement.

A company needs to record 6 months of accrued interest on a 4-year, 12%, $12,000 promissory note payable. How much interest expense should be accrued?

MATCHING Select the term that matches each of the following descriptions. a.Interest b.Maturity Value c.Principal d.Lender e.Factoring f.Fraction of year g.Maturity date h.Implicit i.Maker -Date which the total interest and principal must be repaid

The following data are from the company's records for 2013: -Refer to the Ace Computing Company. The entry to recognize the write-off of the specific uncollected accounts will act to

The following data are from the company's records for 2013: -Refer to A-One Construction. What is the balance of Accounts Receivable at December 31, 2013?

MATCHING Select the term that matches each of the following descriptions. a.Interest b.Maturity Value c.Principal d.Lender e.Factoring f.Fraction of year g.Maturity date h.Implicit i.Maker -The difference between the principal amount of the note and its maturity value

The accounts receivable turnover ratio is used to evaluate how well a company does in collecting its accounts receivable.

On December 15, 2013, the accounts receivable balance was $50,000 and the balance in the allowance for doubtful accounts was $5,000. That morning, a $1,000 uncollected account was written-off. The net realizable value of accounts receivable immediately after the write-off is:

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 -A way to estimate bad debt expense.

Match each statement to the item listed below a.Bank credit card c.Sears card b.Debit card d.American Express -No service charge expense is incurred by the issuer when this card is used.

The following data are from the company's records for 2013: -Refer to Accelerated Solutions. If the aging method is used to estimate bad debts, what amount should be recorded as bad debt expense for 2013?

A sales invoice that bears the notation 2/10 means ____________________.

Match each statement to the item listed below a.Bank credit card c.Sears card b.Debit card d.American Express -A non-bank credit card.

____________________ are receivables that generally specify an interest rate and a maturity date at which any interest and principal must be repaid.

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

The account, "Allowance for Doubtful Accounts" is an expense account (the cost of making bad credit sales)that is reported on the income statement.

A company needs to record 6 months of accrued interest on a 4-year, 12%, $12,000 promissory note payable. How much interest expense should be accrued?

MATCHING Select the term that matches each of the following descriptions. a.Interest b.Maturity Value c.Principal d.Lender e.Factoring f.Fraction of year g.Maturity date h.Implicit i.Maker -Date which the total interest and principal must be repaid

The following data are from the company's records for 2013: -Refer to the Ace Computing Company. The entry to recognize the write-off of the specific uncollected accounts will act to

The following data are from the company's records for 2013: -Refer to A-One Construction. What is the balance of Accounts Receivable at December 31, 2013?

MATCHING Select the term that matches each of the following descriptions. a.Interest b.Maturity Value c.Principal d.Lender e.Factoring f.Fraction of year g.Maturity date h.Implicit i.Maker -The difference between the principal amount of the note and its maturity value

The accounts receivable turnover ratio is used to evaluate how well a company does in collecting its accounts receivable.

On December 15, 2013, the accounts receivable balance was $50,000 and the balance in the allowance for doubtful accounts was $5,000. That morning, a $1,000 uncollected account was written-off. The net realizable value of accounts receivable immediately after the write-off is:

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 -A way to estimate bad debt expense.

Match each statement to the item listed below a.Bank credit card c.Sears card b.Debit card d.American Express -No service charge expense is incurred by the issuer when this card is used.

The following data are from the company's records for 2013: -Refer to Accelerated Solutions. If the aging method is used to estimate bad debts, what amount should be recorded as bad debt expense for 2013?

A sales invoice that bears the notation 2/10 means ____________________.

Match each statement to the item listed below a.Bank credit card c.Sears card b.Debit card d.American Express -A non-bank credit card.

____________________ are receivables that generally specify an interest rate and a maturity date at which any interest and principal must be repaid.

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