Exam (elaborations)
Accounting 26th Ed Chapter 09 Receivables
- Module
- Chapter_09_Receivables
- Institution
- Chapter_09_Receivables
Chapter 09 Receivables Accounting 26th Ed by Warren -Test Bank
[Show more]
Content preview
CHAPTER 9: RECEIVABLES1. SALESNotes Receivable and Accounts Receivable can also be called trade receivables.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.09-01 - 09-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.12 - Receivables Reporting
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic
2. Receivables not currently collectible are reported in the investments section of the balance sheet.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.09-01 - 09-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.12 - Receivables Reporting
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic
3. Trade receivables occur when two companies trade or exchange notes receivables.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.09-01 - 09-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.12 - Receivables Reporting
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic
4. Other receivables include nontrade receivables such as loans to company officers.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.09-01 - 09-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.12 - Receivables Reporting
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
,Chapter 9: Receivables
5. Both Accounts Receivable and Notes Receivable represent claims that are expected to be collected in cash.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.09-01 - 09-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.12 - Receivables Reporting
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic
6. When companies sell their receivables to other companies, the transaction is called factoring.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.09-02 - 09-02
ACCREDITING STANDARDS: ACCT.ACBSP.APC.12 - Receivables Reporting
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic
7. Of the two methods of accounting for uncollectible receivables, the allowance method provides in
advance for uncollectible receivables.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.09-02 - 09-02
ACCREDITING STANDARDS: ACCT.ACBSP.APC.12 - Receivables Reporting
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
,Chapter 9: Receivables
8. A disadvantage of factoring is that the company selling its receivables immediately receives cash.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.09-02 - 09-02
ACCREDITING STANDARDS: ACCT.ACBSP.APC.12 - Receivables Reporting
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic
9. Small companies can use either the direct write-off method or the allowance method.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.09-02 - 09-02
ACCREDITING STANDARDS: ACCT.ACBSP.APC.12 - Receivables Reporting
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic
10. GAAP requires companies with a large amount of receivables to use the allowance method.
a. True
b. False
ANSWER: True
DIFFICULTY: Bloom’s:
Remembering
Easy
LEARNING OBJECTIVES: ACCT.WARD.16.09-02 - 09-02
ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP
ACCT.ACBSP.APC.12 - Receivables
Reporting ACCT.AICPA.FN.03 -
Measurement BUSPROG: Analytic
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, Chapter 9: Receivables
11. The direct writeoff method records bad debt expense when an account is determined to be uncollectible.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.09-02 - 09-02
ACCT.WARD.16.09-03 - 09-03
ACCREDITING STANDARDS: ACCT.ACBSP.APC.12 - Receivables Reporting
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic
12. Generally accepted accounting principles do not normally allow the use of the direct write-off
method of accounting for uncollectible accounts.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.09-02 - 09-02
ACCT.WARD.16.09-03 - 09-03
ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP
ACCT.ACBSP.APC.12 - Receivables
Reporting ACCT.AICPA.FN.03 -
Measurement BUSPROG: Analytic
13. The direct write-off method records bad debt expense in the year the specific account receivable is
determined to be uncollectible.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.09-02 - 09-02
ACCT.WARD.16.09-03 - 09-03
ACCREDITING STANDARDS: ACCT.ACBSP.APC.12 - Receivables Reporting
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ExamsExpert. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £2.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
62890 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now