When using the percentage of sales method of estimating uncollectible accounts, any existing balance in the Allowance for Uncollectible Accounts account is ignored as
\nlong as the account has a credit balance after adjustment. True False 2 points Question 2 In counting the days of interest on a note, the day the money is borrowed is<\/p>\n
omitted, but the day it is paid back is counted. True False 2 points Question 3 Credit card companies absorb the loss from uncollectible accounts. True False 2 points<\/p>\n
Question 4 Both a company’s credit terms and collection policies affect accounts receivable turnover. True False 2 points Question 5 Generally, the older the account<\/p>\n
receivable, the lower the probability of collection. True False 2 points Question 6 When a company collects sales taxes from customers, the amount of taxes collected<\/p>\n
represents a revenue. True False 2 points Question 7 When a note is dishonored, the payee should debit Accounts Receivable for the maturity value of the note. True<\/p>\n
False 2 points Question 8 When a note is dishonored, the payee will make an entry that includes a credit to: A.\tAccounts Receivable. B.\tCash. C.\tNotes<\/p>\n
Receivable. D.\tInterest Payable. 2 points Question 9 Maxwell issued to Prentice Co., a $2,400, 90-day, 12 percent note for the purchase of goods. The journal entry<\/p>\n
needed on Prentice Company’s books at the time of sale is: A.\tNotes Receivable\t2,472\tSales\t2,400 Interest Revenue\t72 B.\tNotes Receivable\t2,400<\/p>\n
Sales\t2,400 C.\tNotes Receivable\t2,436\tSales\t2,436 D.\tNotes Receivable\t2,400\tInterest Revenue\t72\tSales\t2,472 2 points<\/p>\n
Question 10 In estimating uncollectible accounts for a period, the percentage of sales method is the simplest method. True False 2 points Question 11 The interest rate<\/p>\n
on notes receivable and notes payable is generally stated in annual terms. True False 2 points Question 12 When a note is dishonored, the payee will make an accounting<\/p>\n
entry that includes a debit to Notes Receivable. True False 2 points Question 13 An example of a contingent liability is: A.\taccounts payable. B. federal excise tax<\/p>\n
payable. C.\tsalaries payable. D.\tpotential loss from a lawsuit. 2 points Question 14 The preemptive right refers to a stockholder’s right to receive dividends<\/p>\n
when they are declared by the board of directors. True False 2 points Question 15 The date of record (of dividends) is the date established by the board of directors<\/p>\n
to determine who will receive a dividend. True False 2 points Question 16 One of the most basic rights of the stockholder is the right to vote at stockholders’<\/p>\n
meetings in person or by proxy. True False 2 points Question 17 The market value of a stock depends on a number of factors, including investors’ expectations regarding<\/p>\n
the future performance of a corporation. True False 2 points Question 18 When Retained Earnings is debited in a journal entry, a deficit exists. True False 2 points<\/p>\n
Question 19 Which of the following statements regarding earnings per share is correct? A.\tEarnings per share and book value per share are equal. B.<\/p>\n
Earnings per share is calculated for all shares of stock that have been issued by the corporation. C.\tOnly one earnings per share figure will appear on the income<\/p>\n
statement for each period. D.\tEarnings per share is equal to net income divided by the weighted-average number of common shares outstanding if the corporation has no<\/p>\n
preferred stock outstanding. 2 points Question 20 Treasury stock is stock that: A.\tis apportioned to cover special projects such as the construction of a new<\/p>\n
building. B.\thas been issued but was reacquired by the corporation. C.\tmust be offered to existing stockholders first in amounts proportional to their<\/p>\n
shareholdings of the issuer’s stock. D.\thas never been issued. 2 points Question 21 The price-earnings ratio is computed by dividing the current market price per share<\/p>\n
of common stock by earnings per share. True False 2 points Question 22 The charter is the contract between the state and the incorporators which gives the corporation<\/p>\n
its separate legal existence. True False 2 points Question 23 The three significant cash dividend dates are the date of declaration, date of record, and date of<\/p>\n
payment. True False 2 points Question 24 Which of the following is a characteristic of a corporation? A.\tSeparate legal existence B.\tShareholders may enter<\/p>\n
into a contract on behalf of the corporation C.\tDifficult transferability of ownership because of widely scattered ownership D.\tFull liability of owners to corporate<\/p>\n
creditors 2 points Question 25 The three significant cash dividend dates are (in order) the dates of: A.\tdeclaration, record, and payment. B.\trecord,<\/p>\n
distribution, and payment. C.\tdeclaration, record, and distribution. D.\tdeclaration, distribution, and payment. 2 points Question 26 In The Profit’s A Stein<\/p>\n
Meats Receivables Video clip, Jamie, Marcus’ Portfolio Manager, uncovers that Stein Meats owes how much in liabilities? $500,000 $7.8 million $4 million $2 million 2<\/p>\n
points Question 27 In The Profit’s A Stein Meats Receivables Video clip, it is easy to collect monies from customers who are past due. True False 2 points Question 28<\/p>\n
In The Profit’s A Stein Meats Receivables Video clip, what is the main reason that Stein Meats is struggling financially? They don’t sell enough meat. They extend<\/p>\n
credit to their customers and don’t collect from them. Employees are stealing. They owe too much to the bank. 2 points Question 29 In The Profit’s A Stein Meats<\/p>\n
Receivables Video clip, how much money does Stein Meats have in the bank to pay their bills? $30,000 $300,000 $500,000 $4 million 2 points Question 30 In The Profit’s<\/p>\n
A Stein Meats Receivables Video clip, how much revenue does Stein Meats do annually? $18 million $4 million $50 million $1 million<\/p>\n","protected":false},"excerpt":{"rendered":"
When using the percentage of sales method of estimating uncollectible accounts, any existing balance in the Allowance for Uncollectible Accounts account is ignored as long as the account has a credit balance after adjustment. True False 2 points Question 2 Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-6755","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/6755","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=6755"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/6755\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=6755"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=6755"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=6755"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}