CASH AND RECEIVABLES
T F F F F T F F T T T F F T F F T F T F
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20.
Items considered cash. Items considered cash. Items considered cash. Cash equivalents definition. Bank overdrafts. Cash equivalents. Classification of receivables. Items considered trade receivables. Trade discount uses. Sales discounts. Valuation of receivables. Percentage-of-receivables approach. Percentage-of-sales method. Reporting notes receivable. Stated interest rate vs. effective rate. Classification of notes receivable. Recourse liability. Buying receivables with recourse. Selling receivables with recourse. Computing receivables turnover.
d b d d d d d d d c d d a c d a
21. 22. 23. P 24. S 25. 26. 27. 28. 29. S 30. S 31. P 32. 33. 34. 35. 36.
Identification of cash items. Identification of cash items. Classification of travel advance. Items included as cash. Cash equivalent definition. Classification of bank overdraft. Classification of compensating balances. Definition of trade receivables. Identification of trade receivables. Presentation of nontrade receivables. Cash discount definition. Trade discount uses. Classification of sales discounts. Valuation of short-term receivables. Bad debt provision and the matching concept. Bad debts as a percentage of sales.
Test Bank for Intermediate Accounting, Twelfth Edition
MULTIPLE CHOICE—Conceptual (cont.)
b a d c c a a d c c b c
37. 38. 39. 40. S 41. S 42. P 43. 44. *45. *46. *47. *48.
Bad debts as a percentage of sales. Bad debts as a percentage of receivables. Financial statement effect of a note recorded incorrectly. Factoring accounts receivable without recourse. Classification of accounts and notes receivable. Transfer of receivables with recourse. Accounts receivable turnover ratio. Accounts receivable turnover ratio. Entry to replenish Petty Cash. Purpose of Cash Over & Short account. Classification of bank service charges. Treatment of bank credits on bank reconciliation.
These questions also appear in the Problem-Solving Survival Guide. These questions also appear in the Study Guide. * This topic is dealt with in an Appendix to the chapter.
d b c b c c b b d c b a b b d b b d b a c c b b c c c c
49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. 61. 62. 63. 64. 65. 66. 67. 68. 69. 70. 71. 72. 73. 74. 75. 76.
Calculate effective interest on loan with required compensatory balance. Reporting cash. Cash and cash equivalents. Reporting cash. Cash and cash equivalents. Determine effective annual interest rate of sales discount. Calculate balance of accounts receivable. Calculate net realizable value of accounts receivable. Calculate net realizable value of accounts receivable. Calculate bad debt expense using aging of receivables. Calculate bad debt expense using percent of sales. Calculate bad debt expense using percent of receivables. Valuation of accounts receivable. Calculation of bad debt expense. Calculate Allowance for Doubtful Accounts balance. Valuation of accounts receivable. Calculation of bad debt expense. Calculate Allowance for Doubtful Accounts balance. Determine appropriate interest rate for a zero-interest-bearing note. Calculate present value of a zero-interest-bearing note. Calculate cash proceeds from transfer of receivables. Entry to record collection of assigned receivables. Factoring receivables without recourse. Factoring receivables with recourse. Calculate loss on sale of receivables. Calculate loss on sale of receivables. Calculate accounts receivable turnover. Calculate accounts receivable turnover.
Cash and Receivables
MULTIPLE CHOICE—Computational (cont.)
d b b c b c
*77. *78. *79. *80. *81. *82.
Entry to replenish...