Question 1

A maker who dishonours a note does not pay it at maturity.

Accepted Answer

A) True 
 B)False

Question 2

The aging of accounts receivable examines each account receivable to estimate the amount that is uncollectible.

Accepted Answer

A) True 
 B)False

Question 3

The maturity date of a note is the day the note is signed.

Accepted Answer

A) True 
 B)False

Question 4

Phuong Vo borrowed $5,000 and signed a 3-month promissory note at 10%.The total interest on the note is $125.

Accepted Answer

A) True 
 B)False

Question 5

The person who signs a note receivable and promises to pay is the:

Accepted Answer

A)  Maker. 
B)  Payee. 
C)  Holder. 
D)  Receiver. 
E)  Owner. 
A)  Maker. 
B)  Payee. 
C)  Holder. 
D)  Receiver. 
E)  Owner.

Question 6

Calculate the amount of interest that would be owed on a $10,000,90-day,5% note receivable.

Accepted Answer

$123.29 ($

Question 7

Zero Co.uses the allowance method of accounting for bad debts.Their Allowance for Doubtful Accounts account has a year-end debit balance,prior to adjustment,of $800.The bad debts are estimated at 5% of $160,000,the year-end accounts receivable.Prepare the year end adjusting journal entry for bad debt expense.

Accepted Answer

The answer of Zero Co.uses the allowance method of accounting...

Question 8

TechCom had net sales of $315,000 and average accounts receivable of $75,600.Its competitor,ZCom,had net sales of $299,000 and average accounts receivable of $81,350.Calculate the accounts receivable turnover ratio for both companies.Which company is doing a better job of managing its accounts receivable (all other things assumed to be equal)?

Accepted Answer

TechCom = 4.2,ZCom = 3.7.TechC

Question 9

A note receivable discounted with recourse is:

Accepted Answer

A)  A contingent liability. 
B)  An outright sale of a note receivable to a bank. 
C)  Sold to a bank and the bank assumes liability. 
D)  A contingent liability and an outright sale of a note receivable to the bank. 
E)  An outright sale of a note receivable to a bank and the bank assumes liability. 
A)  A contingent liability. 
B)  An outright sale of a note receivable to a bank. 
C)  Sold to a bank and the bank assumes liability. 
D)  A contingent liability and an outright sale of a note receivable to the bank. 
E)  An outright sale of a note receivable to a bank and the bank assumes liability.

Question 10

The ________________ method of accounting for bad debts records the loss from an uncollectible account receivable at the time it is determined to be uncollectible.

Accepted Answer

The answer of The ________________ method of accounting for bad...

Question 11

Failure by the maker of a promissory note to pay the amount due at maturity is known as:

Accepted Answer

A)  Protesting a note. 
B)  Closing a note. 
C)  Dishonouring a note. 
D)  Discounting a note. 
E)  Depreciating a note. 
A)  Protesting a note. 
B)  Closing a note. 
C)  Dishonouring a note. 
D)  Discounting a note. 
E)  Depreciating a note.

Question 12

The accounts receivable turnover ratio is calculated by dividing _________________ by _____________________.

Accepted Answer

Net sales;

Question 13

The days' sales uncollected ratio is calculated by dividing accounts receivable by net sales and multiplying the answer by 365.

Accepted Answer

A) True 
 B)False

Question 14

In October,Z-Mart had $475,000 in net credit sales and $75,000 in accounts receivable.Calculate the days' sales uncollected for October.

Accepted Answer

The answer of In October,Z-Mart had $475,000 in net credit...

Question 15

The allowance method complies with the generally accepted accounting principle of matching.

Accepted Answer

A) True 
 B)False

Question 16

Compaq's accounts receivable turnover rate was 5.7 for this year and 5.4 for last year.Dell's turnover rate was 6.8 for this year and 7 for last year.This means that:

Accepted Answer

A)  Dell has the better turnover rate for both years. 
B)  Compaq has the better turnover rate for both years. 
C)  Dell's turnover rate is improving. 
D)  Compaq's turnover rate is improving. 
E)  Dell has the better turnover rate for both years and Compaq's turnover rate is improving. 
A)  Dell has the better turnover rate for both years. 
B)  Compaq has the better turnover rate for both years. 
C)  Dell's turnover rate is improving. 
D)  Compaq's turnover rate is improving. 
E)  Dell has the better turnover rate for both years and Compaq's turnover rate is improving.

Question 17

A company must have less than 30 days' sales uncollected in order to be adequately liquid.

Accepted Answer

A) True 
 B)False

Question 18

TechCom customer RDA Electronics paid off an $8,300 balance on its account receivable.TechCom should record the transaction as a debit to Accounts Receivable-RDA Electronics and a credit to Cash.

Accepted Answer

A) True 
 B)False

Question 19

Explain why the allowance method satisfies the matching principle.

Accepted Answer

The allowance method recognizes the bad

Question 20

Installment accounts receivable is another name for aging accounts receivable.

Accepted Answer

A) True 
 B)False

A maker who dishonours a note does not pay it at maturity.

The aging of accounts receivable examines each account receivable to estimate the amount that is uncollectible.

The maturity date of a note is the day the note is signed.

Phuong Vo borrowed $5,000 and signed a 3-month promissory note at 10%.The total interest on the note is $125.

The person who signs a note receivable and promises to pay is the:

Calculate the amount of interest that would be owed on a $10,000,90-day,5% note receivable.

A note receivable discounted with recourse is:

The ________________ method of accounting for bad debts records the loss from an uncollectible account receivable at the time it is determined to be uncollectible.

Failure by the maker of a promissory note to pay the amount due at maturity is known as:

The accounts receivable turnover ratio is calculated by dividing _ by _____.

The days' sales uncollected ratio is calculated by dividing accounts receivable by net sales and multiplying the answer by 365.

In October,Z-Mart had $475,000 in net credit sales and $75,000 in accounts receivable.Calculate the days' sales uncollected for October.

The allowance method complies with the generally accepted accounting principle of matching.

Compaq's accounts receivable turnover rate was 5.7 for this year and 5.4 for last year.Dell's turnover rate was 6.8 for this year and 7 for last year.This means that:

A company must have less than 30 days' sales uncollected in order to be adequately liquid.

TechCom customer RDA Electronics paid off an $8,300 balance on its account receivable.TechCom should record the transaction as a debit to Accounts Receivable-RDA Electronics and a credit to Cash.

Explain why the allowance method satisfies the matching principle.

Installment accounts receivable is another name for aging accounts receivable.

Accounting in Business

Analyzing and Reporting Transactions

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Merchandise Inventory and Cost of Sales

Accounting Information Systems

Internal Control and Cash

Filters

Exam 9: Receivables

A maker who dishonours a note does not pay it at maturity.

The aging of accounts receivable examines each account receivable to estimate the amount that is uncollectible.

The maturity date of a note is the day the note is signed.

Phuong Vo borrowed $5,000 and signed a 3-month promissory note at 10%.The total interest on the note is $125.

The person who signs a note receivable and promises to pay is the:

Calculate the amount of interest that would be owed on a $10,000,90-day,5% note receivable.

A note receivable discounted with recourse is:

The ________________ method of accounting for bad debts records the loss from an uncollectible account receivable at the time it is determined to be uncollectible.

Failure by the maker of a promissory note to pay the amount due at maturity is known as:

The accounts receivable turnover ratio is calculated by dividing _________________ by _____________________.

The days' sales uncollected ratio is calculated by dividing accounts receivable by net sales and multiplying the answer by 365.

In October,Z-Mart had $475,000 in net credit sales and $75,000 in accounts receivable.Calculate the days' sales uncollected for October.

The allowance method complies with the generally accepted accounting principle of matching.

Compaq's accounts receivable turnover rate was 5.7 for this year and 5.4 for last year.Dell's turnover rate was 6.8 for this year and 7 for last year.This means that:

A company must have less than 30 days' sales uncollected in order to be adequately liquid.

TechCom customer RDA Electronics paid off an $8,300 balance on its account receivable.TechCom should record the transaction as a debit to Accounts Receivable-RDA Electronics and a credit to Cash.

Explain why the allowance method satisfies the matching principle.

Installment accounts receivable is another name for aging accounts receivable.

Accounting in Business

Analyzing and Reporting Transactions

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Merchandise Inventory and Cost of Sales

Accounting Information Systems

Internal Control and Cash

Filters

The accounts receivable turnover ratio is calculated by dividing _ by _____.