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Which of the following statements is correct regarding receivables? a. Receivables are composed assures of the purchaser to pay for items or services.b. Receivables are claims hosted against customers and also others for money, goods, or services.c. Receivables are non-financial assets.d. Receivables that are supposed to be gathered within a year are classified as nonpresent.
The category "profession receivables" includesa. breakthroughs to officers and employees.b. income tax refunds receivable.c. clintends versus insurance carriers for casualties sustained.d. none of these answer choices are correct.
Which of the following have to be tape-recorded in Accounts Receivable?a. Receivables from officersb. Receivables from subsidiariesc. Dividends receivabled. None of these answer selections are correct.
What is the preferable presentation of accounts receivable from police officers, employees, or affiliated suppliers on a balance sheet?a. As offsets to resources.b. By indicates of footnotes only.c. As assets but separately from other receivables.d. As trade notes and accounts receivable if they otherwise qualify as present assets.
When a customer purchases merchandise inventory from a company organization, she may be given a discount which is designed to induce prompt payment. Such a discount is called a(n)a. profession discount.b. nominal discount.c. enhancement discount.d. cash discount.
Trade discounts area. not recorded in the accounts; rather they are a means of computing a price.b. offered to protect against regular changes in catalogues.c. provided to quote various prices for various quantities purchased.d. every one of the over.
If a company employs the gross method of recording accounts receivable from customers, then sales discounts taken have to be reported asa. a deduction from sales in the revenue statement.b. a things of "various other expense" in the income statement.c. a deduction from accounts receivable in determining the net realizable value of accounts receivable.d. sales discounts forfeited in the cost of items sold section of the revenue statement.
Why perform providers carry out trade discounts?a. To avoid frequent transforms in catalogs.b. To induce prompt payment.c. To easily change prices for various customers.d. To protect against regular changes in catalogs and to easily transform prices for various customers.
The bookkeeping for cash discounts and also profession discounts area. the very same.b. constantly recorded net.c. not the exact same.d. tied to the timing of cash collections on the account.
Of the ideologies to record cash discounts related to accounts receivable, which is more theoretically correct?a. Net technique.b. Gross approach.c. Allowance technique.d. All three approaches are theoretically correct.
All of the adhering to are difficulties connected through the valuation of accounts receivable excepta. uncollectible accounts.b. retransforms.c. cash discounts under the net technique.d. allowances granted.
Why is the allowance technique preferred over the direct write-off approach of bookkeeping for negative debts?a. Allowance technique is provided for tax objectives.b. Quotes are offered.c. Determining worthless accounts under direct write-off method is tough to perform.d. Improved matching of negative debt cost with revenue.
Which of the following principles relates to using the allowance approach in accounting for accounts receivable?a. Bad debt price is an estimate that is based upon historic and prospective indevelopment.b. Bad debt price is based upon the actual amounts figured out to be uncollectible.c. Bad debt cost is an estimate that is based just on an evaluation of the receivables aging.d. Bad debt price is management"s determination of which accounts will be sent out to the attorney for arsenal.
Consider the following: Cash in Bank - checking account of $18,500, Cash on hand also of $500, Post-dated checks obtained totaling $3,500, and also Certificates of deposit totaling $124,000. How a lot must be reported as cash in the balance sheet?a. $ 18,500.b. $ 19,000.c. $ 22,500.d. $136,500.
On January 1, 2014, Lynn Company type of borrows $2,000,000 from National Bank at 11% yearly interemainder. In enhancement, Lynn is forced to save a compensatory balance of $200,000 on deposit at National Bank which will earn interemainder at 5%. The efficient interemainder that Lynn pays on its $2,000,000 loan isa. 10.0%.b. 11.0%.c. 11.5%.d. 11.6%.
Kennikid Company has actually cash in financial institution of $15,000, restricted cash in a sepaprice account of $3,000, and also a bank overdraft in an account at an additional financial institution of $1,000. Kennichild have to report cash ofa. $14,000.b. $15,000.c. $17,000.d. $18,000.
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Kaniper Company kind of has actually the following items at year-end:Cash in financial institution $30,000Petty cash 300Short-term paper with maturity of 2 months 5,500Postdated checks 1,400Kaniper need to report cash and cash equivalents ofa. $30,000.b. $30,300.c. $35,800.d. $37,200.
Intermediate Accounting, Binder Ready Version1sixth EditionDonald E. Kieso, Jerry J. Weygandt, Terry D. Warfield