Chapter 7 Intermediate
Chapter 7 intermediate
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Remington Corporation had accounts receivable of $100,000 at 1/1. The only transactions affecting accounts receivable were sales of $600,000 and cash collections of $550,000. The accounts receivable turnover is
A.
4.0.
B.
4.8.
C.
4.4.
D.
6.0.
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The percentage-of-receivables approach of estimating uncollectible accounts emphasizes matching over valuation of accounts receivable.
True
False
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Which of the following methods of determining bad debt expense does not properly match expense and revenue? A.
Charging bad debts with an amount derived from aging accounts receivable under the allowance method.
B.
Charging bad debts with an amount derived from a percentage of accounts receivable under the allowance method.
C.
Charging bad debts as accounts are written off as uncollectible.
D.
Charging bad debts with a percentage of sales under the allowance method.
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If a petty cash fund is established in the amount of $250, and contains $150 in cash and $95 in receipts for disbursements when it is replenished, the journal entry to record replenishment should include credits to the following accounts
A.
Cash, $95; Cash Over and Short, $5.
B.
Cash, $100.
C.
Petty Cash, $75.
D.
Petty Cash, $100.
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What is a compensating balance?
A.
Margin accounts held with brokers.
B.
Temporary investments serving as collateral for outstanding loans.
C.
Minimum deposits required to be maintained in connection with a borrowing arrangement.
D.
Savings account balances.
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Black Corporation had a 1/1/10 balance in the Allowance for Doubtful Accounts of $12,000. During 2010, it wrote off $8,640 of accounts and collected $2,520 on accounts previously written off. The balance in
Accounts Receivable was $240,000 at 1/1 and $288,000 at 12/31. At 12/31/10,
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Remington Corporation had accounts receivable of $100,000 at 1/1. The only transactions affecting accounts receivable were sales of $600,000 and cash collections of $550,000. The accounts receivable turnover is
A.
4.0.
B.
4.8.
C.
4.4.
D.
6.0.
1 points
Save
The percentage-of-receivables approach of estimating uncollectible accounts emphasizes matching over valuation of accounts receivable.
True
False
1 points
Save
Which of the following methods of determining bad debt expense does not properly match expense and revenue? A.
Charging bad debts with an amount derived from aging accounts receivable under the allowance method.
B.
Charging bad debts with an amount derived from a percentage of accounts receivable under the allowance method.
C.
Charging bad debts as accounts are written off as uncollectible.
D.
Charging bad debts with a percentage of sales under the allowance method.
1 points
Save
If a petty cash fund is established in the amount of $250, and contains $150 in cash and $95 in receipts for disbursements when it is replenished, the journal entry to record replenishment should include credits to the following accounts
A.
Cash, $95; Cash Over and Short, $5.
B.
Cash, $100.
C.
Petty Cash, $75.
D.
Petty Cash, $100.
1 points
Save
What is a compensating balance?
A.
Margin accounts held with brokers.
B.
Temporary investments serving as collateral for outstanding loans.
C.
Minimum deposits required to be maintained in connection with a borrowing arrangement.
D.
Savings account balances.
1 points
Save
Black Corporation had a 1/1/10 balance in the Allowance for Doubtful Accounts of $12,000. During 2010, it wrote off $8,640 of accounts and collected $2,520 on accounts previously written off. The balance in
Accounts Receivable was $240,000 at 1/1 and $288,000 at 12/31. At 12/31/10,