Accounts Receivable, Finance And Accounting

Question: An increase in the firm's receivable turnover ratio means that _____
A
cash sales have decreased

B
it is collecting credit sales more quickly than before

C
inventories have increased

D
it has initiated more liberal credit terms.

Note: Not available
1. Report
Question: 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 was received on March 25, 2007. Under the gross method and the net method, which of the following amounts should appear as net sales in the March income statements? Gross method Net method
A
$48,500 $48,500

B
$48,500 $49,400

C
$49,400 $48,500

D
$49,400 $49,400

Note: Not available
1. Report
Question: 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 was received on March 25, 2007.What would be the gross sales for the month of March? Gross method Net method
A
$50,000 $50,000

B
$50,000 $48,500

C
$49,400 $48,500

D
$48,500 $50,000

Note: Not available
1. Report
Question: A company's accounting policy for recording revenues______
A
must be the same as that of all other companies

B
can be different from that of other companies

C
must be disclosed if different from the revenue principle

D
can be (b), and if so, (c) must follow

Note: Not available
1. Report
Question: A business-printed or catalog price is called the ______
A
list price

B
trade price

C
cash discount

D
trade discount

Note: Not available
1. Report
Question: What is meant by "Deferred Revenue"?
A
Revenue that the company expects to make in the next 12 months.

B
Revenue which the company is counting as a liability until it is earned. It is also referred to as Unearned Revenue.

C
An asset on the balance sheet because a customer has prepaid for services.

D
Strictly a tax item, a way of deferring taxes is counting revenue as deferred as well.

Note: answer not sure
1. Report
Question: 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 Assets and Extinguishments of Liabilities?
A
Financial-components approach.

B
The risks-and-rewards approach.

C
Inseparable-unit approach.

D
Linked-presentation approach.

Note: answer not sure
1. Report
Question: Which of the following is not true about interest on Receivables?
A
Interest receivable is calculated by using the formula Interest= Principal x Interest Rate x Time.

B
Interest receivable does not have to be recognized if interest is to be collected in the next year

C
We need to recognize interest receivable to satisfy the matching principle.

D
Interest receivable is interest earned but not collected.

Note: answer not sure
1. Report
Question: 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
A
$60,000

B
$95,000

C
$55,000

D
$97,000

Note: answer not sure
1. Report
Question: Bad Debts are shown in_________
A
the Profit & Loss A/c

B
the Profit & Loss A/c & the Balance Sheet

C
the Trading A/c & the P& L A/c

D
Adjusted against A/R

Note: answer not sure
1. Report

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Question: An increase in the firm's receivable turnover ratio means that _____

Question: A company's accounting policy for recording revenues______

Question: A business-printed or catalog price is called the ______

Question: What is meant by "Deferred Revenue"?

Question: 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 Assets and Extinguishments of Liabilities?

Question: Which of the following is not true about interest on Receivables?

Question: 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

Question: Bad Debts are shown in_________