Question : Multiple Choice Questions 56. Separate accounts receivable information for each customer important : 1258010

 

Multiple Choice Questions
 

56. Separate accounts receivable information for each customer is important because it reveals all of the following except: 
A. How much each customer has purchased on credit.
B. How much each customer has paid.
C. How much each customer still owes.
D. The basis for sending bills to customers.
E. When the customer intends to pay outstanding balances.

 

 

57. A credit sale of $5,275 to a customer would result in which of the following? 
A. A debit to the Accounts Receivable account in the general ledger and a debit to the customer’s account in the accounts receivable subsidiary ledger.
B. A credit to the Accounts Receivable account in the general ledger and a credit to the customer’s account in the accounts receivable subsidiary ledger.
C. A debit to the Accounts Receivable account in the general ledger and a credit to the customer’s account in the accounts receivable subsidiary ledger.
D. A credit to the Accounts Receivable account in the general ledger and a debit to the customer’s account in the accounts receivable subsidiary ledger.
E. A credit to Sales and a credit to the customer’s account in the accounts receivable subsidiary ledger.

 

 

58. Sellers allow customers to use credit cards for all of the following reasons except: 
A. To be able to charge more due to fees and interest.
B. To lessen the risk of extending credit to customers who cannot pay.
C. To speed up receipt of cash from the credit sale.
D. To increase total sales volume.
E. To avoid having to evaluate a customer’s credit standing for each sale.

59. Which of the following is nottrue regarding a credit card expense?
A. Credit card expense may be classified as a “discount” deducted from sales to get net sales.
B. Credit card expense may be classified as a selling expense.
C. Credit card expense may be classified as an administrative expense.
D. Credit card expense is not recorded by the seller.
E. Credit card expense is a fee the seller pays for services provided by the card company.

 

60. A promissory note received from a customer in exchange for an account receivable is recorded by the payee as: 
A. A cash equivalent.
B. An account receivable.
C. A note receivable.
D. A short-term investment.
E. A note payable.

 

61. The person who signs a note receivable and promises to pay the principal and interest is the: 
A. Maker.
B. Payee.
C. Holder.
D. Receiver.
E. Owner.

 

62. Reporting the details of notes is consistent with which accounting principle that requires financial statements (including footnotes) to report all relevant information? 
A. Relevance.
B. Full disclosure.
C. Evaluation.
D. Materiality.
E. Matching.

63. A promissory note: 
A. Is a short-term investment for the maker.
B. Is a written promise to pay a specified amount of money at a certain date.
C. Is a liability to the payee.
D. Is another name for an installment receivable.
E. Cannot be used in payment of an account receivable.

64. The maturity date of a note receivable: 
A. Is the day of the credit sale.
B. Is the day the note was signed.
C. Is the day the note is due to be repaid.
D. Is the date of the first payment.
E. Is the last day of the month.

 

65. The interest accrued on $7,500 at 6% for 90 days is: 
A. $450.00
B. $ 37.50.
C. $112.50.
D. $  11.25.
E. $1,800.00.

 

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more