Chapter 8 Quiz\t\t\t\t\t\t\t\t\tQuestion 1\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tAn aging of accounts receivable schedule is based on the premise that the longer the period an account remains unpaid, the greater the probability that it will eventually be collected.\t\t\t\t\t\t\t\t\tQuestion 2\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tAllowance for Doubtful Accounts is a contra account that is deducted from Accounts Receivable on the balance sheet.\t\t\t\t\t\t\t\t\tQuestion 3\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tUnder the allowance method, Bad Debt Expense is debited when an account is deemed uncollectible and must be written off.\t\t\t\t\t\t\t\t\tQuestion 4\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tInterest on a 6-month, 10 percent, $10,000 note is calculated by multiplying $10,000 \u00b4 0.10 \u00b4 6\/12.\t\t\t\t\t\t\t\t\tQuestion 5\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tIf a company has significant concentrations of credit risk, it must discuss this risk in the notes to its financial statements.\t\t\t\t\t\t\t\t\tQuestion 6 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tInterest is usually associated with\t\t\t\t\t\t\t\t\tQuestion 7 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tOn January 15, Nifty Company sells merchandise on account to Martinez Associates for $3,000 with terms 3\/10, n\/30. On January 20, Martinez returns merchandise worth $600 to Nifty. On January 24, payment is received from Martinez for the balance due. What is the amount of cash received?\t\t\t\t\t\t\t\t\tQuestion 8 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tThe expense recognition\t\t\t\t\t\t\t\t\tQuestion 9\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tWhich one of the following is not a principle of sound accounts receivable management?\t\t\t\t\t\t\t\t\tQuestion 10\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tBad Debt Expense is considered\t\t\t\t\t\t\t\t\tQuestion 11\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tWhen an account is written off using the allowance method, the\t\t\t\t\t\t\t\t\tQuestion 1\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tAn aging of accounts receivable schedule is based on the premise that the longer the period an account remains unpaid, the greater the probability that it will eventually be collected.\t\t\t\t\t\t\t\t\tQuestion 2\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tAllowance for Doubtful Accounts is a contra account that is deducted from Accounts Receivable on the balance sheet.\t\t\t\t\t\t\t\t\tQuestion 3\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tUnder the allowance method, Bad Debt Expense is debited when an account is deemed uncollectible and must be written off.\t\t\t\t\t\t\t\t\tQuestion 4\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tInterest on a 6-month, 10 percent, $10,000 note is calculated by multiplying $10,000 \u00b4 0.10 \u00b4 6\/12.\t\t\t\t\t\t\t\t\tQuestion 5\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tIf a company has significant concentrations of credit risk, it must discuss this risk in the notes to its financial statements.\t\t\t\t\t\t\t\t\tQuestion 6 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tInterest is usually associated with\t\t\t\t\t\t\t\t\tQuestion 7 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tOn January 15, Nifty Company sells merchandise on account to Martinez Associates for $3,000 with terms 3\/10, n\/30. On January 20, Martinez returns merchandise worth $600 to Nifty. On January 24, payment is received from Martinez for the balance due. What is the amount of cash received?\t\t\t\t\t\t\t\t\tQuestion 8 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tThe expense recognition\t\t\t\t\t\t\t\t\tQuestion 9\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tWhich one of the following is not a principle of sound accounts receivable management?\t\t\t\t\t\t\t\t\tQuestion 10\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tBad Debt Expense is considered\t\t\t\t\t\t\t\t\tQuestion 11\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tWhen an account is written off using the allowance method, the\t\t\t\t\t\t\t\t\tQuestion 12 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tAll of the following statements regarding the financial statement presentation of receivables are true except:\t\t\t\t\t\t\t\t\tQuestion 13\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tWhich of the following is not true regarding a promissory note?\t\t\t\t\t\t\t\t\tQuestion 14\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tThe bookkeeper recorded the following journal entry\t\t\t\t\tAllowance for Doubtful Accounts \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 1,000\t\t\t\t\t \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 Accounts Receivable “\ufffd Richard James \ufffd \ufffd \ufffd \ufffd\u00a0 1,000\t\t\t\t\t\u00a0\t\t\t\t\tWhich one of the following statements is false?\t\t\t\t\t\t\t\t\tQuestion 15\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tThe direct write-off method is acceptable for financial reporting purposes only if the bad debt losses are insignificant.\t\t\t\t\t\t\t\t\tQuestion 16\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tWhen calculating interest on a promissory note with the maturity date stated in terms of days, the\t\t\t\t\t\t\t\t\tQuestion 17\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tThe interest on a $4,000, 9%, 90-day note receivable is\t\t\t\t\t\t\t\t\tQuestion 18 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tWhich of the following is a way of disposing of a note receivable?\t\t\t\t\t\t\t\t\tQuestion 19\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tThe accounts receivable turnover\t\t\t\t\t\t\t\t\tQuestion 20\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tMatch the items below by entering the appropriate code letter in the space provided.<\/p>\n","protected":false},"excerpt":{"rendered":"
Chapter 8 Quiz Question 1 \u00a0 An aging of accounts receivable schedule is based on the premise that the longer the period an account remains unpaid, the greater the probability that it will eventually be collected. Question 2 \u00a0 Allowance Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-200210","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200210","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=200210"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200210\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=200210"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=200210"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=200210"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}