Question 1

A discounted note represents a contingent liability to the original holder.

Accepted Answer

A) True 
 B)False

Question 2

A promissory note is executed in June.When the note is paid the following January,the payee's entry includes (assuming a calendar-year accounting period and no reversing entries)a

Accepted Answer

A) debit to Interest Income. 
B) credit to Cash. 
C) credit to Interest Receivable. 
D) debit to Notes Receivable. 
A) debit to Interest Income. 
B) credit to Cash. 
C) credit to Interest Receivable. 
D) debit to Notes Receivable.

Question 3

Using the percentage of net sales method,uncollectible accounts expense for the year is estimated to be $44,000.If the balance of the Allowance for Uncollectible Accounts is a $9,000 credit before adjustment,what is the balance after adjustment?

Accepted Answer

A) $9,000 
B) $35,000 
C) $44,000 
D) $53,000 
A) $9,000 
B) $35,000 
C) $44,000 
D) $53,000

Question 4

Interest on a 180-day,10 percent,$10,000 note receivable is

Accepted Answer

A) $5,001.54. 
B) $576.76. 
C) $493.15. 
D) $2001.26. 
A) $5,001.54. 
B) $576.76. 
C) $493.15. 
D) $2001.26.

Question 5

When Company A discounts without recourse a note to Company B,Company A has a contingent liability until the note is paid.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following topics involves a contingent liability?

Accepted Answer

A) Installment accounts receivable 
B) A discounted note receivable 
C) Securitization 
D) Credit card sales 
A) Installment accounts receivable 
B) A discounted note receivable 
C) Securitization 
D) Credit card sales

Question 7

Days' sales uncollected equals 365 days divided by

Accepted Answer

A) net sales. 
B) average net accounts receivable. 
C) net income. 
D) the receivable turnover. 
A) net sales. 
B) average net accounts receivable. 
C) net income. 
D) the receivable turnover.

Question 8

When the allowance method is used,the write-off of an account receivable results in an expense at the time of write-off.

Accepted Answer

A) True 
 B)False

Question 9

Under the allowance method,when a specific account is written off,

Accepted Answer

A) total assets will be unchanged. 
B) total assets will decrease. 
C) net income will decrease. 
D) total assets will increase. 
A) total assets will be unchanged. 
B) total assets will decrease. 
C) net income will decrease. 
D) total assets will increase.

Question 10

Use this information to answer the following question. The general ledger account for Accounts Receivable shows a debit balance of $50,000.Allowance for Uncollectible Accounts has a credit balance of $1,000.Net sales for the year were $500,000.In the past,2 percent of sales have proved uncollectible,and an aging of accounts receivable accounts results in an estimate of $13,500 of uncollectible accounts.
-Using the percentage of net sales method,Uncollectible Accounts Expense would be debited for

Accepted Answer

A) $9,000. 
B) $11,000. 
C) $1,000. 
D) $10,000. 
A) $9,000. 
B) $11,000. 
C) $1,000. 
D) $10,000.

Question 11

The general ledger account for Accounts Receivable shows a debit balance of $50,000.Allowance for Uncollectible Accounts has a credit balance of $3,000.Net sales for the year were $500,000.In the past,3 percent of sales have proved uncollectible,and an aging of accounts receivable resulted in an estimate of $20,000 of uncollectible accounts receivable. 
-Using the percentage of net sales method,the Allowance for Uncollectible Accounts balance (after adjustment)would be

Accepted Answer

A) $12,000. 
B) $15,000. 
C) $18,000. 
D) $20,000. 
A) $12,000. 
B) $15,000. 
C) $18,000. 
D) $20,000.

Question 12

Under securitization,a company sells individual receivables with recourse at a large discount.

Accepted Answer

A) True 
 B)False

A discounted note represents a contingent liability to the original holder.

A promissory note is executed in June.When the note is paid the following January,the payee's entry includes (assuming a calendar-year accounting period and no reversing entries)a

Using the percentage of net sales method,uncollectible accounts expense for the year is estimated to be $44,000.If the balance of the Allowance for Uncollectible Accounts is a $9,000 credit before adjustment,what is the balance after adjustment?

Interest on a 180-day,10 percent,$10,000 note receivable is

When Company A discounts without recourse a note to Company B,Company A has a contingent liability until the note is paid.

Which of the following topics involves a contingent liability?

Days' sales uncollected equals 365 days divided by

When the allowance method is used,the write-off of an account receivable results in an expense at the time of write-off.

Under the allowance method,when a specific account is written off,

Under securitization,a company sells individual receivables with recourse at a large discount.

Accounting Principles and the Financial Statements

Analyzing and Recording Business Transactions

Adjusting the Accounts

Completing the Accounting Cycle

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Long -Term Assets

Current Liabilities and Fair Value Accounting

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting and Cost Concepts

Costing Systems: Job Order Costing

Costing Systems Process Costing

Value-Based Systems: Activity-Based Costing and Lean Accounting

Cost-Volume-Profit Analysis

The Budgeting Process

Flexible Budgets and Performance Analysis

Standard Costing and Variance Analysis

Short-Run Decision Analysis and Capital Budgeting

Filters

Exam 9: Receivables

A discounted note represents a contingent liability to the original holder.

A promissory note is executed in June.When the note is paid the following January,the payee's entry includes (assuming a calendar-year accounting period and no reversing entries)a

Using the percentage of net sales method,uncollectible accounts expense for the year is estimated to be $44,000.If the balance of the Allowance for Uncollectible Accounts is a $9,000 credit before adjustment,what is the balance after adjustment?

Interest on a 180-day,10 percent,$10,000 note receivable is

When Company A discounts without recourse a note to Company B,Company A has a contingent liability until the note is paid.

Which of the following topics involves a contingent liability?

Days' sales uncollected equals 365 days divided by

When the allowance method is used,the write-off of an account receivable results in an expense at the time of write-off.

Under the allowance method,when a specific account is written off,

Under securitization,a company sells individual receivables with recourse at a large discount.

Accounting Principles and the Financial Statements

Analyzing and Recording Business Transactions

Adjusting the Accounts

Completing the Accounting Cycle

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Long -Term Assets

Current Liabilities and Fair Value Accounting

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting and Cost Concepts

Costing Systems: Job Order Costing

Costing Systems Process Costing

Value-Based Systems: Activity-Based Costing and Lean Accounting

Cost-Volume-Profit Analysis

The Budgeting Process

Flexible Budgets and Performance Analysis

Standard Costing and Variance Analysis

Short-Run Decision Analysis and Capital Budgeting

Filters