All receivables that are expected to be realized in cash within a year are presented in the current assets section of
rubyCpaMbaAll receivables that are expected to be realized in cash within a year are presented in the current assets section of the balance sheet.
TRUE
FALSE
Both accounts receivable and notes receivable represent claims that are expected to be collected in cash.
TRUE
FALSE
The maturity value of a 12%, 60-day note for $5,000 is $5,100
TRUE
FALSE
The person who is to be paid when a note matures is called the payee.
TRUE
FALSE
The maturity value of a 12%, 60-day note for $1,000 is $1,020.
TRUE
FALSE
The interest on a 6%, 60-day note for $5,000 is $50.
TRUE
FALSE
The party promising to pay a note at maturity is the payee
FALSE
TRUE
When companies sell their receivables to other companies, the transaction is called factoring.
TRUE
FALSE
Under the direct write-off method, an attempt is made to match Bad Debt Expense to sales revenues in the same accounting period.
FALSE
TRUE
When the estimate based on analysis of receivables is used, income is reduced when a specific receivable is written off
FALSE
TRUE
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