Question :
Learning Objective 4-2
1) Cash found the ________.
A) Income statement
B) Balance : 1253231
Learning Objective 4-2
1) Cash is found on the ________.
A) Income statement
B) Balance sheet
C) Statement of changes in shareholders’ equity
D) Statement of operations
2) Cash equivalents are ________.
A) the amounts paid to acquire assets
B) highly liquid investments with maturities of three months or less
C) the total market value of a corporation’s stock
D) current assets minus current liabilities
3) Which of these is a cash equivalent?
A) U.S. treasury bills that mature in three months or less
B) a note receivable that matures in six months
C) a note payable due in three months or less
D) accounts receivable due in three months or less
4) Cash equivalents are found on the ________.
A) Income statement
B) Statement of financial position
C) Statement of changes in shareholders’ equity
D) Statement of operations
5) Cash and cash equivalents is a line item found on the balance sheet that represents the amounts customers owe the company.
6) Cash and cash equivalents are found on both the balance sheet and the statement of cash flows
Learning Objective 4-3
1) Accounts receivable are ________.
A) current assets
B) current liabilities
C) long-term assets
D) long-term liabilities
2) When reporting accounts receivable, the amount reported should be ________.
A) the accounts receivable collected during the period
B) the amount of accounts receivable that a company expects to collect
C) the accounts receivable charged for the current month
D) the amount of accounts receivable minus credit card expense
3) Net accounts receivable are ________.
A) accounts receivable plus the allowance for uncollectible accounts
B) accounts receivable minus the allowance for uncollectible accounts
C) accounts receivable minus bad debts expense
D) sales minus bad debts expense
4) Which of the following methods of accounting for uncollectible accounts matches sales with bad debts expense?
A) direct write-off method
B) allowance method
C) contra-asset method
D) reconciliation method
5) Which of the following is the contra account that accompanies Accounts receivable?
A) Allowance for uncollectible accounts
B) Sales returns and allowances
C) Bad debts expense
D) Net accounts receivable
6) The allowance for uncollectible accounts is a(n) ________.
A) contra-expense account
B) contra-revenue account
C) contra-asset account
D) expense account
7) Which of the following statements is FALSE?
A) The allowance method is a GAAP method.
B) The direct write-off method violates the matching principle.
C) Under the direct write-off method, accounts are expensed when they are identified as uncollectible.
D) Under the allowance method, amounts written off are recorded as bad debts expense.
8) Which of the following statements is FALSE about the allowance method for uncollectible accounts?
A) Bad debt expense is estimated and matched with sales.
B) Expense is recorded during end of the period adjustments.
C) This method is not acceptable under GAAP.
D) The method is acceptable under GAAP.
9) In the allowance method, the adjustment used to write off an uncollectible account ________.
A) decreases net income
B) has no effect on net income
C) reduces total assets
D) decreases liabilities
10) The balance sheet account used to report the amount of accounts receivable that a company does not expect to collect is called ________.
A) net accounts receivable
B) allowance for uncollectible accounts
C) uncollectible accounts expense
D) bad debts expense
