Question 1

The transferor is considered to have surrendered control over its receivables if:

Accepted Answer

A) The transferred assets have been isolated from the transferor. 
B) Each transferee has the right to pledge or exchange the assets it received. 
C) The transferor does not maintain effective control over the transferred assets through either repurchase or redemption agreements before maturity or the ability to cause the transferee to return the assets. 
D) All of these answer choices must occur. 
A) The transferred assets have been isolated from the transferor. 
B) Each transferee has the right to pledge or exchange the assets it received. 
C) The transferor does not maintain effective control over the transferred assets through either repurchase or redemption agreements before maturity or the ability to cause the transferee to return the assets. 
D) All of these answer choices must occur. D

Question 2

The cash collection on December 31,2017,would be recorded as:

Accepted Answer

A

Question 3

Companies can have accounts receivable from ordinary trade customers and from related parties (e.g. ,directors,employees or large shareholders).How does U.S.GAAP differ from IFRS in its requirements regarding separate disclosure of trade receivables and related-party receivables? Why might separate disclosure of related party receivables be useful?

Accepted Answer

U.S.GAAP requires that accounts receivable from related parties be disclosed separately from accounts receivable from ordinary trade customers.IFRS does not require that separate disclosure.
Separate disclosure is useful because a receivable from a related party might not have the same collection pattern as a receivable from a trade customer.The related party could potentially get more extended terms,such that those receivables are collected slower.Alternatively,to make the company appear more effective in its collections,a related party might pay more quickly than necessary.

Question 4

Listed below are 10 terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the number for the correct term.

Accepted Answer

The answer of Listed below are 10 terms followed by...

Question 5

Priscilla's Exotic Pets discounted a note receivable without recourse and the sales criteria were met.The discounting is recorded as:

Accepted Answer

A) A secured borrowing. 
B) Only note disclosure of the arrangement is required. 
C) A sale. 
D) None of these answer choices are correct. 
A) A secured borrowing. 
B) Only note disclosure of the arrangement is required. 
C) A sale. 
D) None of these answer choices are correct.

Question 6

Use the following to answer questions 
The following note disclosure is taken from the 2016 annual report to shareholders of Winchester International Corporation.
NOTE 5: ALLOWANCE FOR LOAN LOSSES
The allowance for loan loss is maintained at a level to absorb probable losses inherent in the loan portfolio.This allowance is increased by provisions charged to operating expense and by recoveries on loans previously charged off,and reduced by charge-offs on loans.
The following is a summary of the changes in the allowances for loan losses for three years:
   Winchester also reported (in thousands)in its comparative balance sheet that it held Loans receivable,net,of $6,869,911 and $6,819,209 at December 31,2016,and December 31,2015,respectively.
-How might a company with loan receivables like Winchester be able to manage earnings in applying generally accepted accounting principles?

Accepted Answer

The Allowance method requires that firms

Question 7

Use the following to answer questions 
The following information is taken from the 2013 annual report to shareholders of Hewlett-Packard (HP)Co.
  
-What is the balance in HP's allowance for doubtful accounts at the end of the fiscal years 2013 and 2012,respectively?

Accepted Answer

Allowance for doubtful accounts = Accoun

Question 8

Explain the reason that Halliburton indicates that its receivables include notes with varying interest rates totaling $12 million at December 31.What significance does this have to the reader?

Accepted Answer

Halliburton is conveying to th

Question 9

Rahal's accounts receivable at December 31,2016,are:

Accepted Answer

A) $90,500. 
B) $88,160. 
C) $82,500. 
D) $80,160. 
A) $90,500. 
B) $88,160. 
C) $82,500. 
D) $80,160.

Question 10

What entry would Cherokee make on December 10,assuming the correct payment was received on that date?

Accepted Answer

The answer of What entry would Cherokee make on December...

Question 11

Under IFRS,transfer of risks and rewards of ownership,rather than transfer of control,is the primary factor determining whether a factored receivable can be treated as sold rather than as part of a secured borrowing.

Accepted Answer

A) True 
 B)False

Question 12

Rahal's 2016 bad debt expense is:

Accepted Answer

A) $2,100. 
B) $2,340. 
C) $4,080. 
D) None of these answer choices are correct. 
A) $2,100. 
B) $2,340. 
C) $4,080. 
D) None of these answer choices are correct.

Question 13

Tom's Textiles shipped the wrong material to a customer,who refused to accept the order.Upon receipt of the material,Tom's would credit accounts receivable and debit:

Accepted Answer

A) Sales. 
B) Sales discount. 
C) Sales returns. 
D) Sales allowances. 
A) Sales. 
B) Sales discount. 
C) Sales returns. 
D) Sales allowances.

Question 14

Use the following to answer questions 
The following information is taken from the 2013 annual report to shareholders of Hewlett-Packard (HP)Co.
  
-How could a company with receivables like HP be able to manage earnings in applying generally accepted accounting principles?

Accepted Answer

The allowance method requires that firms

Question 15

On October 1,2016,Watergate Hotels borrowed $400,000 at 12% interest and pledged $500,000 in accounts receivables as collateral.Additionally,Watergate was charged a finance fee equal to 1% of the accounts receivable assigned.At the end of December,$300,000 of the assigned receivables were collected and remitted to the lender along with accrued interest.
Required:
Prepare journal entries to record the borrowing,the assignment of receivables,the collection on the receivables,and the recognition of interest expense.

Accepted Answer

The answer of On October 1,2016,Watergate Hotels borrowed $400,000 at...

Question 16

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the number for the correct term.

Accepted Answer

The answer of Listed below are five terms followed by...

Question 17

If Frasquita accrued interest of $15,000 on the note in its 2016 year-end financial statements,what would the manufacturer record in its 2016 income statement for this transaction?

Accepted Answer

A) $15,000 of interest revenue. 
B) $25,000 of interest revenue. 
C) $15,000 of interest revenue and $525,000 of sales revenue. 
D) $550,000 of sales revenue. 
A) $15,000 of interest revenue. 
B) $25,000 of interest revenue. 
C) $15,000 of interest revenue and $525,000 of sales revenue. 
D) $550,000 of sales revenue.

Question 18

Cash that is restricted and not available for current operations is reported in the balance sheet as:

Accepted Answer

A) Equity. 
B) Investments. 
C) Liabilities. 
D) A separate section between liabilities and equity. 
A) Equity. 
B) Investments. 
C) Liabilities. 
D) A separate section between liabilities and equity.

Question 19

The journal entry to establish the petty cash fund includes:

Accepted Answer

A) A credit to petty cash and a debit to cash for $150. 
B) A debit to petty cash and a credit to cash for $150. 
C) A credit to cash and a debit to various expenses for $126. 
D) A credit to petty cash and a debit to various expenses for $126. 
A) A credit to petty cash and a debit to cash for $150. 
B) A debit to petty cash and a credit to cash for $150. 
C) A credit to cash and a debit to various expenses for $126. 
D) A credit to petty cash and a debit to various expenses for $126.

Question 20

Using the balance sheet approach,bad debt expense is an indirect result of estimating the net realizable value of accounts receivable.

Accepted Answer

A) True 
 B)False

The transferor is considered to have surrendered control over its receivables if:

The cash collection on December 31,2017,would be recorded as:

Listed below are 10 terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the number for the correct term.

Priscilla's Exotic Pets discounted a note receivable without recourse and the sales criteria were met.The discounting is recorded as:

Use the following to answer questions The following information is taken from the 2013 annual report to shareholders of Hewlett-Packard (HP)Co. -What is the balance in HP's allowance for doubtful accounts at the end of the fiscal years 2013 and 2012,respectively?

Explain the reason that Halliburton indicates that its receivables include notes with varying interest rates totaling $12 million at December 31.What significance does this have to the reader?

Rahal's accounts receivable at December 31,2016,are:

What entry would Cherokee make on December 10,assuming the correct payment was received on that date?

Under IFRS,transfer of risks and rewards of ownership,rather than transfer of control,is the primary factor determining whether a factored receivable can be treated as sold rather than as part of a secured borrowing.

Rahal's 2016 bad debt expense is:

Tom's Textiles shipped the wrong material to a customer,who refused to accept the order.Upon receipt of the material,Tom's would credit accounts receivable and debit:

Use the following to answer questions The following information is taken from the 2013 annual report to shareholders of Hewlett-Packard (HP)Co. -How could a company with receivables like HP be able to manage earnings in applying generally accepted accounting principles?

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the number for the correct term.

If Frasquita accrued interest of $15,000 on the note in its 2016 year-end financial statements,what would the manufacturer record in its 2016 income statement for this transaction?

Cash that is restricted and not available for current operations is reported in the balance sheet as:

The journal entry to establish the petty cash fund includes:

Using the balance sheet approach,bad debt expense is an indirect result of estimating the net realizable value of accounts receivable.

Environment and Theoretical Structure of Financial Accounting

Review of the Accounting Process

The Balance Sheet and Financial Disclosures

The Income Statement, comprehensive Income, and the Statement of Cash Flows

Income Measurement

Time Value of Money Concepts

Inventories: Measurement

Inventories: Additional Issues

Property, plant, and Equipment and Intangible Assets: Acquisition and Disposition

Property, plant, and Equipment and Intangible Assets: Utilization and Impairment

Investments

Current Liabilities and Contingencies

Bonds and Long-Term Notes

Leases

Accounting for Income Taxes

Pensions and Other Postretirement Benefits

Shareholders Equity

Share-Based Compensation and Earnings Per Share

Accounting Changes

The Statement of Cash Flows

Filters

Exam 7: Cash and Receivables

The transferor is considered to have surrendered control over its receivables if:

The cash collection on December 31,2017,would be recorded as:

Listed below are 10 terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the number for the correct term.

Priscilla's Exotic Pets discounted a note receivable without recourse and the sales criteria were met.The discounting is recorded as:

Use the following to answer questions The following information is taken from the 2013 annual report to shareholders of Hewlett-Packard (HP)Co. -What is the balance in HP's allowance for doubtful accounts at the end of the fiscal years 2013 and 2012,respectively?

Explain the reason that Halliburton indicates that its receivables include notes with varying interest rates totaling $12 million at December 31.What significance does this have to the reader?

Rahal's accounts receivable at December 31,2016,are:

What entry would Cherokee make on December 10,assuming the correct payment was received on that date?

Under IFRS,transfer of risks and rewards of ownership,rather than transfer of control,is the primary factor determining whether a factored receivable can be treated as sold rather than as part of a secured borrowing.

Rahal's 2016 bad debt expense is:

Tom's Textiles shipped the wrong material to a customer,who refused to accept the order.Upon receipt of the material,Tom's would credit accounts receivable and debit:

Use the following to answer questions The following information is taken from the 2013 annual report to shareholders of Hewlett-Packard (HP)Co. -How could a company with receivables like HP be able to manage earnings in applying generally accepted accounting principles?

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the number for the correct term.

If Frasquita accrued interest of $15,000 on the note in its 2016 year-end financial statements,what would the manufacturer record in its 2016 income statement for this transaction?

Cash that is restricted and not available for current operations is reported in the balance sheet as:

The journal entry to establish the petty cash fund includes:

Using the balance sheet approach,bad debt expense is an indirect result of estimating the net realizable value of accounts receivable.

Environment and Theoretical Structure of Financial Accounting

Review of the Accounting Process

The Balance Sheet and Financial Disclosures

The Income Statement, comprehensive Income, and the Statement of Cash Flows

Income Measurement

Time Value of Money Concepts

Inventories: Measurement

Inventories: Additional Issues

Property, plant, and Equipment and Intangible Assets: Acquisition and Disposition

Property, plant, and Equipment and Intangible Assets: Utilization and Impairment

Investments

Current Liabilities and Contingencies

Bonds and Long-Term Notes

Leases

Accounting for Income Taxes

Pensions and Other Postretirement Benefits

Shareholders Equity

Share-Based Compensation and Earnings Per Share

Accounting Changes

The Statement of Cash Flows

Filters