All receivables that are expected to be realized in cash within a year are presented in the current assets section of

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All 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

 

    • 10 years ago
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