question archive 1) Nontrade receivables do not include: a) Sales to customers on a deferred payment plan
1) Nontrade receivables do not include: a) Sales to customers on a deferred payment plan
Subject:BusinessPrice: Bought3
1) Nontrade receivables do not include:
a) Sales to customers on a deferred payment plan.
b) Loans to employees
c) Income tax refund receivable
d) Advances to affiliated companies
2. When you use an aging schedule approach for estimating uncollectible accounts:
a) Bad debts expense is measured indirectly, and the Allowance for un-collectibles balance is measured directly.
b) Bad debts expense is measured indirectly, and the Allowance for un-collectibles balance is measured indirectly.
c) Bad debts expense is measured directly, and the Allowance for un-collectibles balance is measured directly.
d) Bad debts expense is measured directly, and the Allowance for un-collectibles balance is measured indirectly.
3. Gershwin Wall covering Inc. shipped the wrong shade of paint to a customer. The customer agreed to keep the paint upon being offered a 15% price reduction. Gershwin would record this reduction by crediting accounts receivable and debiting:
a) Sales
b) Sales discounts
c) Sales returns
d) Sales allowances
4. George Jones is planning on a cruise for his 70th birthday party. He wants to know how much he should set aside at the beginning of each month at 6% interest to accumulate the sum of $4,800 in five years. He should use a table for the:
a) Future value of an ordinary annuity of 1
b) Future value of an annuity due of 1
c) Future value of 1
d) Present value of an annuity due of 1
5. Accounts receivable are normally reported at the:
a) Present value of future cash receipts.
b) Current value plus accrued interest.
c) Expected amount to be received.
d) Current value less expected collection costs.
