Question 1

The cash collection on July 1,2016,would be recorded as:

Accepted Answer

The answer of The cash collection on July 1,2016,would be...

Question 2

What is the correct entry for Flores on November 10?

Accepted Answer

The answer of What is the correct entry for Flores...

Question 3

Peecher accepted a three-year,noninterest-bearing note in exchange for merchandise sold.Which of the following is true?

Accepted Answer

A) Peecher would credit a discount on note receivable when recording the sale. 
B) Peecher would debit interest revenue over the life of the note. 
C) Peecher would debit notes receivable when the note is collected 
D) Peecher would multiply sales revenue by the effective interest rate to determine interest revenue each period 
A) Peecher would credit a discount on note receivable when recording the sale. 
B) Peecher would debit interest revenue over the life of the note. 
C) Peecher would debit notes receivable when the note is collected 
D) Peecher would multiply sales revenue by the effective interest rate to determine interest revenue each period

Question 4

The net method of accounting for cash discounts requires adjusting entries for discounts taken.

Accepted Answer

A) True 
 B)False

Question 5

Cash equivalents would include investments in marketable equity securities as long as management intends to sell the securities in the next three months.

Accepted Answer

A) True 
 B)False

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.
-Using a T-account for the Allowance for Loan Losses,identify the changes in the account during 2016.

Accepted Answer

The answer of Use the following to answer questions 
The...

Question 7

Guido Properties owes First State Bank $60 million under a 7% note with two years remaining to maturity.Due to financial difficulties of Guido,the previous year's interest ($4.2 million)was not received.The bank agrees to settle the note receivable and accrued interest receivable in exchange for land having a fair value of $44 million.
Required: Compute the loss on troubled debt restructuring that the bank would record.

Accepted Answer

The answer of Guido Properties owes First State Bank $60...

Question 8

Drebin Security Systems sold merchandise to a customer in exchange for a $50,000,five-year,noninterest-bearing note when an equivalent loan would carry 10% interest.Drebin would record sales revenue on the date of sale equal to:

Accepted Answer

A) $50,000. 
B) Zero. 
C) The future value of $50,000 using a 10% interest rate. 
D) The present value of $50,000 using a 10% interest rate. 
A) $50,000. 
B) Zero. 
C) The future value of $50,000 using a 10% interest rate. 
D) The present value of $50,000 using a 10% interest rate.

Question 9

When you use an aging schedule approach for estimating uncollectible accounts:

Accepted Answer

A) Bad debts expense is measured indirectly,and the allowance for uncollectible accounts balance is measured directly. 
B) Bad debts expense is measured indirectly,and the allowance for uncollectible accounts balance is measured indirectly. 
C) Bad debts expense is measured directly,and the allowance for uncollectible accounts balance is measured directly. 
D) Bad debts expense is measured directly,and the allowance for uncollectible accounts balance is measured indirectly. 
A) Bad debts expense is measured indirectly,and the allowance for uncollectible accounts balance is measured directly. 
B) Bad debts expense is measured indirectly,and the allowance for uncollectible accounts balance is measured indirectly. 
C) Bad debts expense is measured directly,and the allowance for uncollectible accounts balance is measured directly. 
D) Bad debts expense is measured directly,and the allowance for uncollectible accounts balance is measured indirectly.

Question 10

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.
-Is there any evidence in Winchester's disclosures above that are consistent with earnings management?

Accepted Answer

It appears that Winchester has an excess

Question 11

Depending on the circumstances,the classification of a compensating balance may be either current or noncurrent,and the arrangement should be disclosed in the notes.

Accepted Answer

A) True 
 B)False

Question 12

Under IFRS,accounts receivable can be accounted for as "available for sale" if that approach is elected upon initial recognition of the receivable.

Accepted Answer

A) True 
 B)False

Question 13

Hazelton Manufacturing prepares a bank reconciliation at the end of every month.At the end of May,the general ledger checking account showed a balance of $1,360 and the bank statement showed a bank balance of $1,445.Outstanding checks totaled $350 and deposits in transit were $150.The bank statement listed service charges of $30 and NSF checks totaling $85.The corrected cash balance is:

Accepted Answer

A) $1,130. 
B) $1,160. 
C) $1,245. 
D) $1,445. 
A) $1,130. 
B) $1,160. 
C) $1,245. 
D) $1,445.

Question 14

What bad debt expense would Dinty report in its first-year income statement?

Accepted Answer

A) $ 50,000. 
B) $ 82,000. 
C) $114,000. 
D) Can't be determined from the given information 
A) $ 50,000. 
B) $ 82,000. 
C) $114,000. 
D) Can't be determined from the given information

Question 15

Use the following to answer questions 
The following information is taken from the 2013 annual report to shareholders of Hewlett-Packard (HP)Co.
  
-Using a T-account for the allowance for doubtful accounts,identify the changes in the account during fiscal year 2013.

Accepted Answer

The answer of Use the following to answer questions 
The...

Question 16

In a good system of internal control,the person who initiates a transaction should be allowed to effectively control the processing of the transaction through its final inclusion in the accounting records.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is not true regarding accounting for transfers of receivables under IFRS?

Accepted Answer

A) Transfers of receivables sometimes are treated as a sale of receivables. 
B) Transfers of receivables sometimes are treated as a secured borrowing. 
C) Transfers of receivables can be treated as a sale if the transferee is a QSPE. 
D) Transfer of substantially all the risk and rewards of ownership is an important consideration. 
A) Transfers of receivables sometimes are treated as a sale of receivables. 
B) Transfers of receivables sometimes are treated as a secured borrowing. 
C) Transfers of receivables can be treated as a sale if the transferee is a QSPE. 
D) Transfer of substantially all the risk and rewards of ownership is an important consideration.

Question 18

Use the following to answer questions 
Wilson Company had the following cash balance items listed in its trial balance at 12/31/2016:  
-If Wilson reports under U.S.GAAP,its 12/31/2016 balance sheet would show what cash balance?

Accepted Answer

A) ($5,000). 
B) $55,000. 
C) $60,000. 
D) None these answer choices are correct. 
A) ($5,000). 
B) $55,000. 
C) $60,000. 
D) None these answer choices are correct.

Question 19

The purpose of assigning accounts receivable is to:

Accepted Answer

A) Satisfy a court order. 
B) Complete the legal prerequisites to record their sale. 
C) Comply with form and content rules of bankruptcy proceedings. 
D) Provide collateral for a loan. 
A) Satisfy a court order. 
B) Complete the legal prerequisites to record their sale. 
C) Comply with form and content rules of bankruptcy proceedings. 
D) Provide collateral for a loan.

Question 20

Accounts receivable are normally reported at the:

Accepted Answer

A) Present value of future cash receipts. 
B) Current value plus accrued interest. 
C) Expected amount to be received. 
D) Current value less expected collection costs. 
A) Present value of future cash receipts. 
B) Current value plus accrued interest. 
C) Expected amount to be received. 
D) Current value less expected collection costs.

The cash collection on July 1,2016,would be recorded as:

What is the correct entry for Flores on November 10?

Peecher accepted a three-year,noninterest-bearing note in exchange for merchandise sold.Which of the following is true?

The net method of accounting for cash discounts requires adjusting entries for discounts taken.

Cash equivalents would include investments in marketable equity securities as long as management intends to sell the securities in the next three months.

Drebin Security Systems sold merchandise to a customer in exchange for a $50,000,five-year,noninterest-bearing note when an equivalent loan would carry 10% interest.Drebin would record sales revenue on the date of sale equal to:

When you use an aging schedule approach for estimating uncollectible accounts:

Depending on the circumstances,the classification of a compensating balance may be either current or noncurrent,and the arrangement should be disclosed in the notes.

Under IFRS,accounts receivable can be accounted for as "available for sale" if that approach is elected upon initial recognition of the receivable.

What bad debt expense would Dinty report in its first-year income statement?

Use the following to answer questions The following information is taken from the 2013 annual report to shareholders of Hewlett-Packard (HP)Co. -Using a T-account for the allowance for doubtful accounts,identify the changes in the account during fiscal year 2013.

In a good system of internal control,the person who initiates a transaction should be allowed to effectively control the processing of the transaction through its final inclusion in the accounting records.

Which of the following is not true regarding accounting for transfers of receivables under IFRS?

Use the following to answer questions Wilson Company had the following cash balance items listed in its trial balance at 12/31/2016: -If Wilson reports under U.S.GAAP,its 12/31/2016 balance sheet would show what cash balance?

The purpose of assigning accounts receivable is to:

Accounts receivable are normally reported at the:

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 cash collection on July 1,2016,would be recorded as:

What is the correct entry for Flores on November 10?

Peecher accepted a three-year,noninterest-bearing note in exchange for merchandise sold.Which of the following is true?

The net method of accounting for cash discounts requires adjusting entries for discounts taken.

Cash equivalents would include investments in marketable equity securities as long as management intends to sell the securities in the next three months.

Drebin Security Systems sold merchandise to a customer in exchange for a $50,000,five-year,noninterest-bearing note when an equivalent loan would carry 10% interest.Drebin would record sales revenue on the date of sale equal to:

When you use an aging schedule approach for estimating uncollectible accounts:

Depending on the circumstances,the classification of a compensating balance may be either current or noncurrent,and the arrangement should be disclosed in the notes.

Under IFRS,accounts receivable can be accounted for as "available for sale" if that approach is elected upon initial recognition of the receivable.

What bad debt expense would Dinty report in its first-year income statement?

Use the following to answer questions The following information is taken from the 2013 annual report to shareholders of Hewlett-Packard (HP)Co. -Using a T-account for the allowance for doubtful accounts,identify the changes in the account during fiscal year 2013.

In a good system of internal control,the person who initiates a transaction should be allowed to effectively control the processing of the transaction through its final inclusion in the accounting records.

Which of the following is not true regarding accounting for transfers of receivables under IFRS?

Use the following to answer questions Wilson Company had the following cash balance items listed in its trial balance at 12/31/2016: -If Wilson reports under U.S.GAAP,its 12/31/2016 balance sheet would show what cash balance?

The purpose of assigning accounts receivable is to:

Accounts receivable are normally reported at the:

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