Question 1

Allowance for Doubtful Accounts represents

Accepted Answer

A) cash set aside to make up for bad debts losses. 
B) the amount of uncollectible accounts written off to date. 
C) the difference between total sales made on credit and the amount collected from those credit sales. 
D) the difference between the gross amount of accounts receivable and the net realizable value of accounts receivable. 
A) cash set aside to make up for bad debts losses. 
B) the amount of uncollectible accounts written off to date. 
C) the difference between total sales made on credit and the amount collected from those credit sales. 
D) the difference between the gross amount of accounts receivable and the net realizable value of accounts receivable.

Question 2

Accountants use the __________ to overcome the deficiencies of the direct write-off method for bad debts.

Accepted Answer

The answer of Accountants use the __________ to overcome the...

Question 3

Purchases and sales of cash equivalents are reported as investing activities on a statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 4

Sliders Company
Sliders Company sells its merchandise only on credit.The following data are available at December 31,2017:
 $$\begin{array} { l r } 
\text { Sales } & \$ 375,000 \
\text { Sales returns and allowances } & 12,000 \
\text { Accounts receivable-January 1, 2017 } & 60,600 \
\text { Allowance for doubtful accounts-January 1, 2017 } & 3,200 \
\text { Cash collections during 2017 } & 362,500 \
\text { Accounts written off as uncollectible during 2017 } & 2,400
\end{array}$$  
-Refer to the data for Sliders Company.
The firm estimates that bad debts could be 1% of its net sales.
 A) What amount will Sliders Company recognize as bad debts expense for the year?

B) Once this calculation is recorded, assume that the company has Accounts Receivable of $\$ 58,700$ and Allowance for Doubtful Accounts of $\$ 800$. What will be the net realizable value once the adjustment from (A) is made?

Accepted Answer

A)$363,000 (Net Sales)× 0.01 o

Question 5

Lynx Corp.
The data presented below for Lynx Corp.are for the year ended December 31,2017:
?
 $$\begin{array} { l r } 
\text { Sales (100\% on credit) } & \$ 1,000,000 \
\text { Sales returns } & 30,000 \
\text { Accounts receivable (December 31,2017) } & 170,000 \
\text { Allowance for doubtful accounts (credit balance) } & \
\quad \text { (before adjustment at December } 31,2017 ) & 1,300 \
\text { Estimated amount of uncollectible accounts based on aging analysis } & 14,000
\end{array}$$ ?
-See the data for Lynx Corp. If Lynx Corp.estimates its bad debts at 1% of net credit sales,what amount will be reported as bad debts expense for 2017?

Accepted Answer

A) $9,560 
B) $9,700 
C) $1,700 
D) None of these are correct 
A) $9,560 
B) $9,700 
C) $1,700 
D) None of these are correct

Question 6

If Ash Company had sales during the year of $10,000,000,an average accounts receivable of $2,000,000,and net income of $500,000,its accounts receivable turnover ratio would be 0.25.

Accepted Answer

A) True 
 B)False

Question 7

Identify two methods of accelerating cash from sales.

Accepted Answer

Using credit cards often accelerates cas

Question 8

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 case of nonpayment from a cardholder.

Accepted Answer

A) True 
 B)False

Question 9

The comparative balance sheets for Flagler Co.for 2018 and 2017 indicate that accounts receivable decreased during 2018.Flagler uses the indirect method of preparing the Operating Activities section of its statement of cash flows.How will the decrease in accounts receivable be reported on the statement of cash flows?

Accepted Answer

A) It will be included in the amount of cash and cash equivalents at the end of 2018. 
B) It will be deducted from net income in the Operating Activities section. 
C) It will be added to net income in the Operating Activities section. 
D) It will be reported as a cash outflow in the Investing Activities section. 
A) It will be included in the amount of cash and cash equivalents at the end of 2018. 
B) It will be deducted from net income in the Operating Activities section. 
C) It will be added to net income in the Operating Activities section. 
D) It will be reported as a cash outflow in the Investing Activities section.

Question 10

The payee of a note recognizes a note receivable on the balance sheet and interest revenue on its income statement.

Accepted Answer

A) True 
 B)False

Question 11

Sliders Company
Sliders Company sells its merchandise only on credit.The following data are available at December 31,2017:
 $$\begin{array} { l r } 
\text { Sales } & \$ 375,000 \
\text { Sales returns and allowances } & 12,000 \
\text { Accounts receivable-January 1, 2017 } & 60,600 \
\text { Allowance for doubtful accounts-January 1, 2017 } & 3,200 \
\text { Cash collections during 2017 } & 362,500 \
\text { Accounts written off as uncollectible during 2017 } & 2,400
\end{array}$$  
-Refer to the data for Sliders Company.
Assume the company estimates bad debts using an aging analysis and the aging schedule indicates that $3,600 of the year-end Accounts Receivable will be uncollectible.
 A) What amount will Sliders Company recognize as bad debts expense for the year?

B) If the ending balance of Accounts Receivables is $\$ 38,700$, what is the net realizable value of Accounts Receivable reported on December 31, 2017 ?

Accepted Answer

A)$3,600 - ($3,200 -

Question 12

Analyze the adjustments needed for the following transactions involving notes payable for Marcus Company,whose fiscal year ends September 30.Round all numbers to the nearest penny.
?
 $\begin{array}{llr}
  \text { Sept. 10 } &  \text {  Received cash for a 60 -day, $ 12 \%, \$ 10,000 $ note payable. Interest is in addition to the face val } \
\quad\quad30 & \text { Made end-of-year adjusting entry to accrue interest expense for the note. } \
 \text {Nov. 9  } &  \text {  Paid amount due on the note plus interest. } 
\end{array}$

Accepted Answer

?
$10,000 × 0.12 × 2

Question 13

Assuming a company uses the allowance method,the entry to recognize the write-off of the specific uncollectible accounts will

Accepted Answer

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

Question 14

The equity method of accounting is used if the investor owns at least 20% of the investee and the investor is able to secure influence over the investee.

Accepted Answer

A) True 
 B)False

Question 15

Sliders Company
Sliders Company sells its merchandise only on credit.The following data are available at December 31,2017:
? $$\begin{array} { l r } 
\text { Sales } & \$ 375,000 \
\text { Sales returns and allowances } & 12,000 \
\text { Accounts receivable-January 1, 2017 } & 60,600 \
\text { Allowance for doubtful accounts-January 1, 2017 } & 3,200 \
\text { Cash collections during 2017 } & 362,500 \
\text { Accounts written off as uncollectible during 2017 } & 2,400
\end{array}$$ ?
-Refer to the data for Sliders Company.
?
Determine the balance of Accounts Receivable at December 31,2017.

Accepted Answer

$58,700
$60,600 (Account Recei

Question 16

The party that agrees to repay is the ____________________ of the note.

Accepted Answer

The answer of The party that agrees to repay is...

Question 17

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 will have what effect?

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 18

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

Accepted Answer

A) True 
 B)False

Question 19

On July 1,2017,Overlin Corp.purchased $100,000 of 8% bonds at face value.Interest is paid annually on June 30.If the accounting year for Overlin ends at December 31,2017,what will be reported with respect to the bonds on that date?

Accepted Answer

A) The carrying value of the bonds will be $108,000. 
B) The cash received in interest will be $8,000. 
C) Interest income in the amount of $4,000 will be accrued. 
D) A loss on the bonds will be reported in the Other Income and Expense section of the 2017 income statement until the entire amount of interest is paid on June 30,2018. 
A) The carrying value of the bonds will be $108,000. 
B) The cash received in interest will be $8,000. 
C) Interest income in the amount of $4,000 will be accrued. 
D) A loss on the bonds will be reported in the Other Income and Expense section of the 2017 income statement until the entire amount of interest is paid on June 30,2018.

Question 20

The mechanism that keeps track of the balances owed by individual customers is called a(n)__________.

Accepted Answer

The answer of The mechanism that keeps track of the...

Allowance for Doubtful Accounts represents

Accountants use the __________ to overcome the deficiencies of the direct write-off method for bad debts.

Purchases and sales of cash equivalents are reported as investing activities on a statement of cash flows.

If Ash Company had sales during the year of $10,000,000,an average accounts receivable of $2,000,000,and net income of $500,000,its accounts receivable turnover ratio would be 0.25.

Identify two methods of accelerating cash from sales.

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 case of nonpayment from a cardholder.

The payee of a note recognizes a note receivable on the balance sheet and interest revenue on its income statement.

Assuming a company uses the allowance method,the entry to recognize the write-off of the specific uncollectible accounts will

The equity method of accounting is used if the investor owns at least 20% of the investee and the investor is able to secure influence over the investee.

The party that agrees to repay is the ____________________ of the note.

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 will have what effect?

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

On July 1,2017,Overlin Corp.purchased $100,000 of 8% bonds at face value.Interest is paid annually on June 30.If the accounting year for Overlin ends at December 31,2017,what will be reported with respect to the bonds on that date?

The mechanism that keeps track of the balances owed by individual customers is called a(n)__________.

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 Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

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Exam 7: Receivables and Investments

Allowance for Doubtful Accounts represents

Accountants use the __________ to overcome the deficiencies of the direct write-off method for bad debts.

Purchases and sales of cash equivalents are reported as investing activities on a statement of cash flows.

If Ash Company had sales during the year of $10,000,000,an average accounts receivable of $2,000,000,and net income of $500,000,its accounts receivable turnover ratio would be 0.25.

Identify two methods of accelerating cash from sales.

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 case of nonpayment from a cardholder.

The payee of a note recognizes a note receivable on the balance sheet and interest revenue on its income statement.

Assuming a company uses the allowance method,the entry to recognize the write-off of the specific uncollectible accounts will

The equity method of accounting is used if the investor owns at least 20% of the investee and the investor is able to secure influence over the investee.

The party that agrees to repay is the ____________________ of the note.

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 will have what effect?

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

On July 1,2017,Overlin Corp.purchased $100,000 of 8% bonds at face value.Interest is paid annually on June 30.If the accounting year for Overlin ends at December 31,2017,what will be reported with respect to the bonds on that date?

The mechanism that keeps track of the balances owed by individual customers is called a(n)__________.

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 Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

Filters