財務(wù)會計英語 練習(xí)及答案ch08

1、chapter 8receivableschapter 8receivableschapter 8receivablestrue/false1.notes receivable and accounts receivables can also be called trade receivables.ans:tdif:1obj:012.receivables from company owners and officers should be disclosed separately on the balance sheet.ans:tdif:1obj:013.receivables not

2、currently collectible are reported in the investments section of the balance sheet.ans:tdif:1obj:014.since those responsible for receivables record keeping and credit approval do not handle cash, these duties do not need to be separated to maintain good internal control.ans:fdif:1obj:025.maintaining

3、 the accounts receivable control account and the accounts receivable subsidiary ledger should be assigned to the same employee for good internal control.ans:fdif:1obj:026.when companies sell their receivables to other companies, the transaction is called factoringans:tdif:01obj:037.of the two method

4、s of accounting for uncollectible receivables, the allowance method provides in advance for uncollectible receivables.ans:tdif:1obj:038.the difference between accounts receivable and its contra asset account is called net realizable value.ans:tdif:1obj:049.the estimate based on sales method violates

5、 the matching principle.ans:fdif:2obj:0419110.when the estimate based on analysis of receivables is used, income is reduced when a specific receivable is written off.ans:fdif:2obj:0411.when an account receivable that has been written off is subsequently collected, the account receivable is reinstate

6、d.ans:tdif:2obj:0412.although allowance for doubtful accounts normally has a credit balance, it may have either a debit or a credit balance before adjusting entries are recorded at the end of the accounting period.ans:tdif:1obj:0413.at the end of a period, before the accounts are adjusted, allowance

7、 for doubtful accounts has a credit balance of $250, and net sales on account for the period total $500,000. if uncollectible accounts expense is estimated at 1% of net sales on account, the current provision to be made for uncollectible accounts expense is $4,750.ans:fdif:3obj:0414.at the end of a

8、period, before the accounts are adjusted, allowance for doubtful accounts has a debit balance of $500, and net sales on account for the period total $800,000. if uncollectible accounts expense is estimated at 1% of net sales on account, the current provision to be made for uncollectible accounts exp

9、ense is $8,500.ans:fdif:3obj:0415.allowance for doubtful accounts is a liability account.ans:fdif:1obj:0416.at the end of a period, before the accounts are adjusted, allowance for doubtful accounts has a debit balance of $2,000. if the estimate of uncollectible accounts determined by aging the recei

10、vables is $30,000, the current provision to be made for uncollectible accounts expense is $30,000.ans:fdif:3obj:0417.at the end of a period, before the accounts are adjusted, allowance for doubtful accounts has a credit balance of $5,000. if the estimate of uncollectible accounts determined by aging

11、 the receivables is $50,000, the current provision to be made for uncollectible accounts expense is $45,000.ans:tdif:3obj:0418.when using the estimate-based-on-sales method, the entry to record uncollectible accounts expense includes a credit to the accounts receivable account.ans:fdif:2obj:0419.whe

12、n using the estimate based on analysis of receivables, the amount computed in the analysis is always the required amount that would be recorded in the adjusting entry.ans:fdif:2obj:0420.the allowance for doubtful accounts is similar to accumulated depreciation in that the account represents the tota

13、l of all accounts written-off since the beginning year.ans:fdif:2obj:0421.generally accepted accounting principles do not normally allow the use direct write-off method of accounting for uncollectible accounts.ans:tdif:2obj:0522.the direct write-off method records uncollectible accounts expense in t

14、he year the specific account receivable is determined to be uncollectible.ans:tdif:1obj:0523.the equation for computing interest on an interest-bearing note is as follows: interest equals maturity value times interest rate times time.ans:fdif:2obj:0624.the due date of a 60-day note dated july 10 is

15、september 10.ans:fdif:2obj:0625.the maturity value of a 12%, 60-day note for $5,000 is $5,600.ans:fdif:2obj:0626.the maturity value of a note receivable is always the same as its face value.ans:fdif:2obj:0627.the interest on a 6%, 60-day note for $5,000 is $300.ans:fdif:2obj:0628.the party promising

16、 to pay a note at maturity is the payee.ans:fdif:1obj:0629.if the maker of a note fails to pay the debt on the due date, the note is said to be dishonored.ans:tdif:1obj:0730.when a note is received from a customer on account, it is recorded by debiting accounts receivable and crediting notes receiva

17、ble.ans:fdif:2obj:0731.the balance of the allowance for doubtful accounts is added to accounts receivable on the balance sheet.ans:fdif:1obj:0832.the accounts receivable turnover measures the length of time in days it takes to collect a receivable.ans:fdif:2obj:0933.a 60-day, 12% note receivable for

18、 $20,000, dated may 20, is discounted at the bank on june 9 at 15%. the number of days in the discount period is 20.ans:fdif:3obj:app34.a 60-day, 12% note receivable for $20,000, dated may 20, is discounted at the bank on june 9 at 15%. the proceeds are $20,340.ans:fdif:3obj:app35.if the proceeds fr

19、om discounting a note receivable are less than the face value of the note, interest expense will be debited for the excess of the proceeds over the face value.ans:tdif:3obj:app36.the discounting of a note receivable creates a contingent liability that continues in effect until the due date of the

20、60;note.ans:tdif:1obj:app37.a note receivable can be sold to a financial institution to secure cash before the maturity date. this type of transaction is called discounting the note receivable.ans:tdif:1obj:app38.the amount of cash received for a discounted noted is called maturity value.ans:fdif:2o

21、bj:app39.the proceeds received from discounting a note receivable at a bank are equal to the face value of the note less the discount charged by the bank.ans:fdif:2obj:appmultiple choice1.a note receivable due in 18 months is listed on the balance sheet under the caption a.long-term liabilitiesb.fix

22、ed assetsc.current assetsd.investmentsans:ddif:2obj:012.internal control over receivables is achieved when the employee who handles the accounting for receivables a.also is involved with the operating aspects of approving creditb.also is involved with the operating aspects of collecting re

23、ceivablesc.is not involved with the operating aspects of approving creditd.also is involved with authorizing adjustments to receivablesans:cdif:1obj:023.the internal control objective most relevant to receivables is a.safeguard ply with laws and regulationsc.operate efficientlyd.asse

24、ss riskans:adif:2obj:024.the two methods of accounting for uncollectible receivables are the allowance method and the a.equity methodb.direct write-off erest methodd.cost methodans:bdif:2obj:035.if the allowance method of accounting for uncollectible receivables is used, what general ledg

25、er account is debited to write off a customer's account as uncollectible?a.uncollectible accounts expenseb.allowance for doubtful accountsc.accounts receivabled.interest expenseans:bdif:1obj:046.allowance for doubtful accounts has a credit balance of $800 at the end of the year (before adjustmen

26、t), and an analysis of accounts in the customers ledger indicates doubtful accounts of $15,000. which of the following entries records the proper provision for doubtful accounts?a.debit uncollectible accounts expense, $800; credit allowance for doubtful accounts, $800b.debit uncollectible accounts e

27、xpense, $14,200; credit allowance for doubtful accounts, $14,200c.debit allowance for doubtful accounts, $800; credit uncollectible accounts expense, $800d.debit allowance for doubtful accounts, $15,800; credit uncollectible accounts expense, $15,800ans:bdif:3obj:047.allowance for doubtful accounts

28、has a debit balance of $500 at the end of the year (before adjustment), and uncollectible accounts expense is estimated at 3% of net sales. if net sales are $600,000, the amount of the adjusting entry to record the provision for doubtful accounts is a.$18,500b.$17,500c.$18,000d.none of the aboveans:

29、cdif:3obj:048.after the accounts are adjusted and closed at the end of the fiscal year, accounts receivable has a balance of $450,000 and allowance for doubtful accounts has a balance of $25,000. what is the net realizable value of the accounts receivable?a.$25,000b.$425,000c.$450,000d.$455,000ans:b

30、dif:2obj:049.if the allowance method of accounting for uncollectible receivables is used, what general ledger account is credited to write off a customer's account as uncollectible?a.uncollectible accounts expenseb.accounts receivablec.allowance for doubtful accountsd.interest expenseans:bdif:1o

31、bj:0410.allowance for doubtful accounts is listed on the balance sheet under the caption a.owner's equityb.investmentsc.fixed assetsd.current assetsans:ddif:1obj:0411.on the balance sheet, the amount shown for the allowance for doubtful accounts is equal to the a.uncollectible accounts expense f

32、or the yearb.total of the accounts receivables written-off during the year c.total estimated uncollectible accounts as of the end of the yeard.sum of all accounts that are past due.ans:cdif:2obj:0412.allowance for doubtful accounts has a credit balance of $1,100 at the end of the year (before adjust

33、ment), and an analysis of customers' accounts indicates doubtful accounts of $12,900. which of the following entries records the proper provision for doubtful accounts?a.debit uncollectible accounts expense, $14,000; credit allowance for doubtful accounts, $14,000b.debit allowance for doubtful a

34、ccounts, $14,000; credit uncollectible accounts expense, $14,000c.debit allowance for doubtful accounts, $11,800; credit uncollectible accounts expense, $11,800d.debit uncollectible accounts expense, $11,800; credit allowance for doubtful accounts, $11,800ans:ddif:3obj:0413.allowance for doubtful ac

35、counts has a credit balance of $1,500 at the end of the year (before adjustment), and an analysis of customers' accounts indicates doubtful accounts of $17,900. which of the following entries records the proper provision for doubtful accounts?a.debit allowance for doubtful accounts, $16,400; cre

36、dit uncollectible accounts expense, $16,400b.debit allowance for doubtful accounts, $19,400; credit uncollectible accounts expense, $19,400c.debit uncollectible accounts expense, $19,400; credit allowance for doubtful accounts, $19,400d.debit uncollectible accounts expense, $16,400; credit allowance

37、 for doubtful accounts, $16,400ans:ddif:3obj:0414.what is the type of account and normal balance of allowance for doubtful accounts?a.contra asset, creditb.asset, debitc.asset, creditd.contra asset, debitans:adif:2obj:0415.a company uses the estimate of sales method to account for uncollectible acco

38、unts. when the firm writes off a specific customer's account receivable a.total current assets are reducedb.total expenses for the period are increasedc.total current assets are reduced and total expenses are increasedd.there is no effect on total current assets or total expensesans:ddif:3obj:04

39、16.an estimate based on an analysis of receivables shows that $780 of accounts receivables are uncollectible. the allowance for doubtful accounts has a debit balance of $110. after preparing the adjusting entry at the end of the year, the balance in the uncollectible accounts expense is a.$110b.$780

40、c.$670d.$890ans:ddif:3obj:0417.abc company uses the estimate of sales method of accounting for uncollectible accounts. abc estimates that 3% of all credit sales will be uncollectible. on january 1, 2005, the allowance for doubtful accounts had a credit balance of $2,400. during 2005, abc wrote-off a

41、ccounts receivable totaling $1,800 and made credit sales of $100,000. after the adjusting entry, the december 31, 2005, balance in the uncollectible accounts expense would be a.$1,200b.$3,000c.$3,600d.$7,200ans:bdif:3obj:0418.the balance in allowance for doubtful accounts must be carefully considere

42、d prior to the end of the year adjustment when applying which method?a.direct write-off methodb.estimate based on salesc.estimate based on an analysis of receivablesd.both (b) and (c)ans:cdif:2sto:0419.donovan company uses the estimate based on analysis of receivables to account for uncollectible ac

43、counts. the company has determined that the irish company account is uncollectible. to write-off this account, donovan should debita.uncollectible accounts expense and credit accounts receivableb.uncollectible accounts expense and credit allowance for doubtful accountsc.allowance for doubtful accoun

44、ts and credit accounts receivabled.accounts receivable and credit allowance for doubtful accounts ans:cdif:2obj:0420.using the estimate based on sales method of accounting for uncollectible accounts, the entry to reinstate a specific receivable previously written off would include a a.credit to allo

45、wance for doubtful accountsb.credit to accounts receivablec.debit to allowance for doubtful accountsd.debit to accounts receivableans:ddif:2obj:0421.at the beginning of the year, the balance in the allowance for doubtful accounts is a credit of $540. during the year, $350 of previously written-off a

46、ccounts were reinstated and accounts totaling $410 are written-off as uncollectible. the end of the year balance in the allowance for doubtful accounts should be a.$350b.$410c.$480d.$600ans:cdif:3obj:0422.if the direct write-off method of accounting for uncollectible receivables is used, what genera

47、l ledger account is debited to write off a customer's account as uncollectible?a.uncollectible accounts payableb.accounts receivablec.allowance for doubtful accountsd.uncollectible accounts expenseans:ddif:2obj:0523.if the direct write-off method of accounting for uncollectible receivables is us

48、ed, what general ledger account is credited to write off a customer's account as uncollectible?a.uncollectible accounts expenseb.accounts receivablec.allowance for doubtful accountsd.interest expenseans:bdif:1obj:0524.one of the weaknesses of the direct write-off method is that it a.understates

49、accounts receivable on the balance sheetb.violates the matching principlec.is too difficult to use for many companiesd.is based on estimatesans:bdif:2obj:0525.the amount of a promissory note is called the a.realizable valueb.maturity valuec.face ceedsans:cdif:1obj:0626.the amount of the pr

50、omissory note plus the interest earned on the due date is called the a.realizable valueb.maturity valuec.face realizable valueans:bdif:1obj:0627.a 60-day, 10% note for $8,000, dated april 15, is received from a customer on account. the face value of the note is a.$8,600b.$7,200c.$8,800d.$

51、8,000ans:ddif:1obj:0628.a 90-day, 12% note for $10,000, dated may 1, is received from a customer on account. the maturity value of the note is a.$10,000b.$10,300c.$450d.$9,550ans:bdif:3obj:0629.interest on a note can be calculated without knowledge of the a.note's maturity dateb.rate of interest

52、c.notes durationd.principal amountans:adif:1obj:0630.on november 1, blazer company receives a 6% interest bearing note from ram company to settle a $20,000 account receivable. the note is due in six months. at december 31, blazer should record interest revenue of a.$0b.$100c.$200d.$600ans:cdif:3obj:

53、0731.if the maker of a promissory note fails to pay the note on the due date, the note is said to be a.displacedb.disallowedc.dishonoredd.discountedans:cdif:1obj:0732.the journal entry to record a note received from a customer to apply on account is a.debit notes receivable; credit accounts receivab

54、leb.debit accounts receivable; credit notes receivablec.debit cash; credit notes receivabled.debit notes receivable; credit notes payableans:adif:2obj:0733.a $6,000, 30-day, 12% note recorded on november 21 is not paid by the maker at maturity. the journal entry to recognize this event is a.debit cash, $6,060; credit notes rece