Thursday, October 24, 2019
Accounts Receivable and Correct Marks
Which of the following events involves an accrual? Choose one answer. | a. Recording interest that has been earned but not received | | | b. Recording supplies that have been purchased with cash but not yet used. | | | c. Recording revenue that has been earned but not yet collected in cash. | | | d. A. and C. | | Correct Marks for this submission: 5/5. Question 2 Marks: 5 Which resource provider typically receives first priority when resources are divided as part of a business's liquidation? Choose one answer. | a. stockholders | | | b. owners | | | c. the company's managers | | | d. creditors | |Correct Marks for this submission: 5/5. Question 3 Marks: 5 Which of the following transactions involves a deferral? Choose one answer. | a. Recording salaries of employees earned but not yet paid. | | | b. Recording the interest earned (but not received) on a CD. | | | c. Recording interest accrued on a note payable. | | | d. Recording the prepayment of three months rent. | | Correct Marks for this submission: 5/5. Question 4 Marks: 5 Which of the following groups has the primary responsibility for establishing generally accepted accounting principles for business entities in the United States?Choose one answer. | a. Internal Revenue Service | | | b. U. S. Congress | | | c. Governmental Accounting Standards Board | | | d. Financial Accounting Standards Board | | Correct Marks for this submission: 5/5. Question 5 Marks: 5 The left side of a T-account is known as the: Choose one answer. | a. Debit Side | | | b. Credit side | | | c. Claims side | | | d. Equity side | | Correct Marks for this submission: 5/5. 1 Marks: 5 Product costs are matched against sales revenue Choose one answer. | a. in the period immediately following the sale. | | | b. when the merchandise is purchased. | | c. when the sale is made. | | | d. in the period immediately following the purchase. | | Correct Marks for this submission: 5/5. Question 2 Marks: 5 The left side of a T-account is known as th e: Choose one answer. | a. Claims side | | | b. Equity side | | | c. Credit side | | | d. Debit Side | | Correct Marks for this submission: 5/5. Question 3 Marks: 5 When prices are rising, which method of inventory, if any, will result in the lowest relative net cash outflow (including the effects of taxes, if any)? Choose one answer. | a. weighted average. | | | b. FIFO | | | c. LIFO | | | d.None of these; inventory methods cannot affect cash flows. | | Incorrect Marks for this submission: 0/5. Question 4 Marks: 5 Which of the following is considered a period cost? Choose one answer. | a. Transportation cost on goods received from suppliers. | | | b. Cost of merchandise purchased. | | | c. Packaging costs for merchandise to be sold. | | | d. Advertising expense for the current month. | | Correct Marks for this submission: 5/5. Question 5 Marks: 5 Which of the following is considered a product cost? Choose one answer. | a. Salaries paid to employees of a retailer. | | | b.Utility ex pense for the current month. | | | c. Transportation cost on goods received from suppliers. | | | d. Transportation cost on goods shipped to customers. | | Correct Marks for this submission: 5/5. 1 Marks: 5 Receivables are normally reported on the balance sheet at net realizable value. In contrast, payables are carried at face value. Which accounting principle requires this treatment of payables? Choose one answer. | a. Matching concept. | | | b. Monetary unit assumption. | | | c. Going concern assumption. | | | d. Materiality concept. | | Correct Marks for this submission: 5/5.Question 2 Marks: 5 The amount of accounts receivable that is actually expected to be collected is known as: Choose one answer. | a. Bad debts expense. | | | b. Net realizable value. | | | c. Allowance for doubtful accounts. | | | d. The present value of accounts receivable. | | Correct Marks for this submission: 5/5. Question 3 Marks: 5 The practice of reporting the net realizable value of receivables in the financial statements is commonly called: Choose one answer. | a. the cash flow method of accounting for bad debts. | | | b. the direct write-off method of accounting for bad debts. | | | c. he allowance method of accounting for bad debts. | | | d. Both a and b are correct. | | Correct Marks for this submission: 5/5. Question 4 Marks: 5 What does the accounts receivable turnover ratio measure? Choose one answer. | a. How quickly the accounts receivable balance increases. | | | b. How quickly inventory turns into accounts receivable. | | | c. How quickly accounts receivable turn into cash. | | | d. Average balance of accounts receivables. | | Correct Marks for this submission: 5/5. Question 5 Marks: 5 Which of the following businesses would most likely have the longest operating cycle? Choose one answer. a. A national pharmacy chain. | | | b. A discount store. | | | c. A producer of wine. | | | d. A chain of pizza restaurants. | | Incorrect Marks for this submission: 0/5. 1 Marks: 5 What is the name used for the type of secured bond that requires a pledge of a designated piece of property in case of default? Choose one answer. | a. Debenture Bond | | | b. Indenture Bond | | | c. Mortgage Bond | | | d. Registered Bond | | Correct Marks for this submission: 5/5. Question 2 Marks: 5 Which of the following would be classified as a long-term operational asset? Choose one answer. | a. Accounts Receivable | | | b.Treasury Stock | | | c. Inventory | | | d. Goodwill | | Correct Marks for this submission: 5/5. Question 3 Marks: 5 Jocelyn Corporation recorded the following in its general journal on 1/1/06: Cash                                                 98,000 Discount on Bonds Payable             2,000 Bonds Payable                              100,000 Which of the following answers correctly describes the transaction on 1/1/06? Choose one answer. | a. Jocelyn issued bonds at 98. | | | b. Jocelyn issued bonds at 102. | | | c. Jocelyn issued bonds at a $2,000 premium. | | | d. Jocelyn signed a note payable for $98,000. | Correct Marks for this submission: 5/5. Question 4 Marks: 5 Which of the following terms is used to identify the process of expense recognition for property, plant and equipment? Choose one answer. | a. Amortization | | | b. Depletion | | | c. Depreciation | | | d. Revision | | Correct Marks for this submission: 5/5. Question 5 Marks: 5 Which method of depreciation is used by most U. S. companies for financial reporting purposes? Choose one answer. | a. Straight Line | | | b. MACRS | | | c. Double Declining Balance | | | d. Units of Production | | Correct Marks for this submission: 5/5.
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