Acc Week 1 Questions
1)What type of receivable is evidenced by a formal instrument and normally requires the payment of interest
An account receivable |
Past-due accounts receivables |
A trade receivable |
A note receivable |
2) When is a receivable recorded by a service organization?
When the related expenses are incurred |
When the bill is sent to the customer |
When the customer pays |
When service is provided on account |
3) At what value are accounts receivable reported on the balance sheet?
Present value |
Cash (net) realizable value |
Fair market value |
Maturity value |
4) Short-term notes receivable are reported at their cash (net) realizable value.
True |
False |
5) Which one of these statements about promissory notes is incorrect?
The party making the promise to pay is called the maker. |
The party to whom payment is to be made is called the payee. |
A promissory note is not a negotiable instrument. |
A promissory note is more liquid than an account receivable. |
6) Which of the following should be classified as an “other” receivable?
Trade receivables |
Interest receivable |
Accounts receivable |
Notes receivable |
7) What type of receivables result from sales transactions?
Long-term receivables |
Trade receivables |
Non-trade receivables |
Other receivables |
8) Which one of the following is not a method used by companies to accelerate cash receipts?
Accepting national credit cards for customer purchases |
Writing off receivables |
Selling receivables to a factor |
Offering discounts for early payment |
9) Which of the following accounts is debited when a company factors its accounts receivable?
Interest Expense |
Loss on Sale of Accounts Receivable |
Accounts Receivable |
Service Charge Expense |
10) Which of the following is the value at which loans and receivables should be reported under IFRS?
Net of bad debt expense |
Cash realizable value |
Amortized cost |
Maturity value |
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