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CHAPTER 9 ACCOUNTING FOR RECEIVABLES MULTIPLE CHOICE QUESTIONS PART 9 MULTIPLE CHOICE QUESTIONS 141. The average collection period is computed by dividing a. net credit sales by average gross accounts receivable. b. net credit sales by ending gross accounts receivable. c. the accounts receivable turnover ratio by 365 days. d. 365 days by the accounts receivable turnover ratio. Use the following information for questions 142– ...

Other / Other 16 Nov 2016

CHAPTER 9 ACCOUNTING FOR RECEIVABLES MULTIPLE CHOICE QUESTIONS PART 6 MULTIPLE CHOICE QUESTIONS 81. When an account is written off using the allowance method, accounts receivable a. is unchanged and the allowance account increases. b. increases and the allowance account increases. c. decreases and the allowance account decreases. d. decreases and the allowance account increases. 82. Two bases for estimating uncollectible accounts a ...

Other / Other 16 Nov 2016

CHAPTER 9 ACCOUNTING FOR RECEIVABLES MULTIPLE CHOICE QUESTIONS PART 7 MULTIPLE CHOICE QUESTIONS 101. During 2008, Carbondale Inc. had sales on account of $132,000, cash sales of $54,000, and collections on account of $84,000. In addition, they collected $1,450 which had been written off as uncollectible in 2007. As a result of these transactions, the change in the accounts receivable balance indicates a 9 - 16 Test Bank for Accounti ...

Other / Other 16 Nov 2016

CHAPTER 9 ACCOUNTING FOR RECEIVABLES MULTIPLE CHOICE QUESTIONS PART 8 MULTIPLE CHOICE QUESTIONS 121. Which of the following is not true regarding a promissory note? a. Promissory notes may not be transferred to another party by endorsement. b. Promissory notes may be sold to another party. c. Promissory notes give a stronger legal claim to the holder than accounts receivable. d. Promissory notes may be bearer notes and not specifica ...

Other / Other 16 Nov 2016

CHAPTER 9 ACCOUNTING FOR RECEIVABLES PART 2 TRUE-FALSE STATEMENTS 1. Trade receivables occur when two companies trade or exchange notes receivables. 2. Other receivables include nontrade receivables such as loans to company officers. 3. Both accounts receivable and notes receivable represent claims that are expected to be collected in cash. 4. Receivables are valued and reported in the balance sheet at their gross amount less any sales ...

Other / Other 14 Nov 2016

CHAPTER 9 ACCOUNTING FOR RECEIVABLES MULTIPLE CHOICE QUESTIONS CHAPTER 9 ACCOUNTING FOR RECEIVABLES PART 4 38. Claims for which formal instruments of credit are issued as proof of the debt are a. accounts receivable. b. interest receivable. c. notes receivable. d. other receivables. 39. Interest is usually associated with a. accounts receivable. b. notes receivable. c. doubtful accounts. d. bad debts. Accounting for Receiv ...

Other / Other 14 Nov 2016

CHAPTER 9 ACCOUNTING FOR RECEIVABLES PART 3 TRUE-FALSE STATEMENTS 21. A factor purchases receivables from businesses for a fee and collects the remittances directly from customers. 22. A major advantage of national credit cards to retailers is that there is no charge to the retailer by the credit card companies for their services. 23. Receivables may be sold because they may be the only reasonable source of cash. 24. If a retailer acce ...

Other / Other 14 Nov 2016

CHAPTER 9 ACCOUNTING FOR RECEIVABLES PART 1 CHAPTER STUDY OBJECTIVES 1. Identify the different types of receivables. 2. Explain how companies recognize accounts receivable in the accounts. 3. Distinguish between the methods and bases companies use to value accounts receivable. 4. Describe the entries to record the disposition of accounts receivable. 5. Compute the maturity date of and interest on notes receivable. 9 - 4 ...

Other / Other 14 Nov 2016

CHAPTER 9 ACCOUNTING FOR RECEIVABLES PART 5 MULTIPLE CHOICE QUESTIONS 9 - 10 Test Bank for Accounting Principles, Eighth Edition 61. When an account becomes uncollectible and must be written off, a. Allowance for Doubtful Accounts should be credited. b. Accounts Receivable should be credited. c. Bad Debts Expense should be credited. d. Sales should be debited. 62. The collection of an account that had been previously written off under ...

Other / Other 14 Nov 2016

ACC 162 Planning for capital investments PART 5 MULTIPLE CHOICE QUESTIONS 66. The discount rate that will result in the highest net present value for a project is a. any rate lower that the cost of capital. b. any rate higher than the cost of capital. c. the lowest rate used to evaluate the project. d. the highest rate used to evaluate the project. 67. Which of the following will increase the net present value of a project? a. An ...

Other / Other 05 Nov 2016