Accounts Receivable Test
A business-printed or catalog price is called the ______
A company recorded two sales of $20.000 and $30,000 on March 1, 2007 under the credit terms of 3/10, n/30. Payment for the $20,000 sale was received on March 10, 2007. Payment for the $30,000 sale ...
A company would choose to factor it's receivables because:
A company's accounting policy for recording revenues______
A customer has ten open invoices of various amounts, and sends a check which does not indicate which invoices are being paid.� The best thing to do is:
A customer has two accounts, and mistakenly makes a payment on the wrong one.� What is the best way to handle this outside of returning the payment to the customer?
A customer used his credit card to pay $400 for the services received. The credit card company charged 2.5% as service charges. What is the amount that the company will record as deposit to its che...
A firm receives cash for 30% of its sales with the remaining 70% being credit sales. Of the credit sales, 20% are collected in the month of the sale, 60% in the month following the sale, and 20% in...
A firm's inventory turnover (IT) is 5 times on a cost of goods sold (COGS) of $800,000. If the IT is improved to 8 times while the COGS remains the same, a substantial amount of funds is released f...
A Subsidiary ledger containing only customer accounts is a/an
A system where inventory is not kept on hand but is ordered to fulfill orders once needed is
A transfer of financial assets in accordance with SFAS 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities may be treated as a sale if the transferor ...
ABC Services provides accounting services to a client and collects $1,000 in cash. How and in which of the accounts will the increase in cash be recorded by ABC Services as a result of providing th...
Accounts Receivable is recorded as _________
Accounts Receivable that arise from the regular sale of merchandise is also referred to as____________
Advances received from the customers are invoiced at the time of advance payment?
Advances received from the customers are shown_______
All of the following are true about interest receivable except
Allowance for Accounts Receivable is called ________
Allowance for doubtful accounts is ________
An accrued revenue would be shown on the balance sheet as _____
An amount added to the cost of merchandise to establish the selling price is called:
An increase in the firm's receivable turnover ratio means that _____
Are adjustments to book interest earned but not received ever reversed?
At the end of the fiscal year, Accounts Receivable has a balance of $100,000 and Allowance for Doubtful Accounts has a balance of $7,000. The expected net realizable value of the Accounts Receivabl...
At the end of the fiscal year, before the accounts are adjusted, Account Receivable has a balance of $200,000 and Allowance for Doubtful Accounts has a credit balance of $2500. If the estimate of u...
At the end of the year, Loose Construction Co. Ltd.used an income statement method of estimation and calculated $20,000. They currently have a credit balance of $2,000 in Allowance for Doubtful Acc...
Athens Corp. sold 80% pro rata interest in a $2,000,000 note receivable to Sparta Company Ltd. for $1,920,000. The note was originally issued at its face amount. Future benefits and costs of servic...
Bad debts are generally______
Bad Debts are shown in_________
Bad Debts are shown on the following financial statements: _________
Bell Corp. had a net income of $100,000, paid income taxes of $30,000, and incurred interest expenses of $8,000. What was their times interest earned ratio?
Companies that do not carry enough inventory will incur _______
Correcting inaccurate invoices is usually accomplished in four ways. Which of the following is the best way?
Costs that does not carry enough inventory include_______.
Credit card discounts are reported on the income statement as
Credit given to a customer for part of the sales price of the merchandise not returned is called ______
Factoring Receivables is a __________.
Financial Statement ratio analysis may be undertaken to study liquidity, turnover, profitability, and other indicators. The current ratio indicates ___________________
Henry Stores, Inc. had sales of $2,000,000 during December. Experience has shown that merchandise equaling 7% of the sales will be returned within 30 days and an additional 3% will be returned with...
How do collection agencies typically work with a company with receivables?
If your AR turnover went up from 5 to 7 over the course of a year, it means that _____________.
In a "Quotation" , it is vital that the contract clearly define the agreed commercial terms and conditions. Which one of the following does it exclude?
In accounting for the transfer of financial assets, which of the following is the approach underlying the accounting prescribed by SFAS 140, Accounting for Transfers and Servicing of Financial Asse...
In which of the financial statements will the sales discount be reflected?
In which of the following cases would revenue be recorded?
Increasing the credit period from 30 to 60 days in response to a similar action taken by all the competitors of a firm will result in:
Is the Accounts Receivable department considered "revenue generating"?
Merchandise returned by a customer for a credit on account or a cash refund is called __________
Most of the companies expect that over ____ of their billings will be collected.
Ninety-percent of Vogel Bird Seeds' total sales of $600,000 is on credit. If its year-end Receivables turnover is 5, the average collection period (based on a 365-day year) and the year-end Receiva...
On a company's Balance Sheet, A/R is the amount_________.
On January 1, Davis College assigned $500,000 of Accounts Receivable to the Scholastic Finance Company. It gave a 14% note for $450,000 representing 90% of the assigned accounts and received procee...
On the balance sheet, Receivables may be classified as ________
The Accounts Receivable department uses a_________
The adjusting entry to estimate the amount of Receivables that a business house fears will not be collected is _________________:
The adjusting journal entry to record accrued interest revenue is__________________
The antecedents of receivables are critical to the management of receivable assets and is the key driver of the cost to manage a company's revenue stream. A simple formula to illustrate this point ...
The credit policy of Spurting Products inc. is "1.5/10, net 35." At present, 30% of the customers take the discount, 62% pay within the net period, and the rest pay within 45 days of the invoice. I...
The Method of recording bad debt expenses is known as the____________________
The net realizable value of Accounts Receivable is__________.
The receipt of cash from a customer to clear his accounts would be recorded as___________.
The Sales Returns and Allowances – Account is classified as a/an _________ .
To which accounting concept does Accounts Receivable relate?
To which column should Sales Discount be extended (transferred) on the work sheet?
Under which concept do goods sold to a sole proprietorship firm fall?
Use the following information to compute interest revenue. Notes receivable $10,000, due in 90 days with interest at 10%.
Using the following information, calculate net sales revenue. Sales Revenue $100,000, Sales Discounts $3,000, Sales Returns and Allowances $2,000 and Cost of Goods Sold $40,000
What do we call it when a firm extends credit terms that encourage the buyers of certain products to take delivery before the peak sales period and to defer payment until after the peak sales period?
What is B2B?
What is meant by "Deferred Revenue"?
What is meant by Accounts Receivable?
What is meant by Factoring?
What is the best first step to take with delinquent payers?
What is the expectation of most companies and their billings?
When a note receivable is dishonored, for which amount is Accounts Receivable debited?
When a payment is received from a customer but is not yet deposited into the bank, the amount lies in the________________
When using the indirect method of preparing the "Cash Flows from Operating Activities" section of a statement of cash flows, a net increase between the opening and closing balances of Net Accounts ...
Where should Sales Discount be recorded?
Which of the following is not true about interest on Receivables?
Which of the following is used to calculate the Accounts Receivable turnover ratio?
Which of the following statements is correct?
Which of the following statements regarding the calculation of 'day's sales' in receivables is incorrect?
Which of the following will not improve the current ratio?
Which of the following would the AR department book an adjustment for at year end?
Which two of the following key attributes of a quotation promote excellent receivable results? 1.Feasibility/ deliverability of the offer 2.Payment terms 3.Clear commercial terms and conditions ag...
Why do companies bother with adjustments? Wouldn't it be easier to let items clear up the following month?
Why is "day's sales in Accounts Receivable" important to calculate?
Why is it important to review and analyze AR ratios?
Why must companies actively manage their outstanding receivables?
Why would a company break revenue up into specific accounts instead of having one master "revenue" account?
Why would a service item be kept in inventory in the accounting system?
You received an invoice that shows credit terms of 2/10, n/60. What does the number 10 in the credit terms refer to?