You are watching: Which of the following statements is correct regarding receivables?
Which the the adhering to statements is correct about receivables? a. Receivables space written assures of the purchaser to pay for products or services.b. Receivables are cases held versus customers and others because that money, goods, or services.c. Receivables are non-financial assets.d. Receivables that space expected to be accumulated within a year space classified as noncurrent.
The category "trade receivables" includesa. Advancements to officers and employees.b. Income tax refunds receivable.c. Claims versus insurance providers for casualties sustained.d. None of this answer selections are correct.
Which the the following should be taped in accounts Receivable?a. Receivables from officersb. Receivables indigenous subsidiariesc. Dividends receivabled. Nobody of these answer options are correct.
What is the preferable presentation of account receivable native officers, employees, or affiliated providers on a balance sheet?a. Together offsets to capital.b. By method of footnotes only.c. As assets yet separately from various other receivables.d. As trade notes and accounts receivable if castle otherwise qualified as current assets.
When a customer purchases was inventory native a business organization, she may be provided a discount i beg your pardon 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 videotaped in the accounts; fairly they space a means of computing a price.b. Supplied to avoid frequent transforms in catalogues.c. Used to quote various prices for different quantities purchased.d. All of the above.
If a company employs the gross an approach of recording account receivable indigenous customers, climate sales discounts taken must be reported asa. A deduction from sales in the income statement.b. Things of "other expense" in the revenue statement.c. A remove from accounts receivable in identify the net realizable value of accounts receivable.d. Sales discounts forfeited in the price of items sold section of the revenue statement.
Why execute companies carry out trade discounts?a. To prevent frequent transforms in catalogs.b. To induce prompt payment.c. Come easily alter prices for various customers.d. To avoid frequent transforms in catalogs and to easily change prices for various customers.
The audit for cash discounts and also trade discounts area. The same.b. Constantly recorded net.c. No the same.d. Tied come the time of cash collections on the account.
Of the ideologies to record cash discounts pertained to accounts receivable, i m sorry is an ext theoretically correct?a. Net approach.b. Gun approach.c. Allowance approach.d. Every three viewpoints are about theory correct.
All that the following are problems connected with the valuation of account receivable excepta. Uncollectible accounts.b. Returns.c. Cash discounts under the network method.d. Allowances granted.
Why is the allowance an approach preferred end the straight write-off technique of accountancy for negative debts?a. Allowance an approach is provided for taxes purposes.b. Approximates are used.c. Identify worthless account under straight write-off method is challenging to do.d. Improved equivalent of negative debt cost with revenue.
Which the the following concepts relates to making use of the allowance an approach in audit for account receivable?a. Poor debt cost is an calculation that is based upon historical and prospective information.b. Bad debt expense is based upon the actual amounts determined to it is in uncollectible.c. Bad debt expense is an estimate that is based just on an evaluation of the receivables aging.d. Poor debt cost is management"s decision of i beg your pardon accounts will certainly be sent out to the attorney because that collection.
Consider the following: Cash in financial institution - checking account that $18,500, Cash top top hand that $500, Post-dated checks received totaling $3,500, and Certificates of deposit totaling $124,000. Just how much have to be reported together cash in the balance sheet?a. $ 18,500.b. $ 19,000.c. $ 22,500.d. $136,500.
On January 1, 2014, Lynn agency borrows $2,000,000 from National financial institution at 11% annual interest. In addition, Lynn is required to save a compensatory balance the $200,000 on deposit at National financial institution which will certainly earn attention at 5%. The efficient interest that Lynn payment on that $2,000,000 loan isa. 10.0%.b. 11.0%.c. 11.5%.d. 11.6%.
Kennison company has cash in bank of $15,000, restricted cash in a separate account the $3,000, and a bank overdraft in one account at an additional bank that $1,000. Kennison must report cash ofa. $14,000.b. $15,000.c. $17,000.d. $18,000.
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Kaniper agency has the complying with items in ~ year-end:Cash in financial institution $30,000Petty cash 300Short-term record with maturity of 2 month 5,500Postdated check 1,400Kaniper need to report cash and cash equivalents ofa. $30,000.b. $30,300.c. $35,800.d. $37,200.
Intermediate Accounting, Binder prepared Version16th EditionDonald E. Kieso, Jerry J. Weygandt, terry D. Warfield