Accounts Receivable, Finance And Accounting

Question: The adjusting journal entry to record accrued interest revenue is__________________
A
Debit Cash, Credit Notes Receivable

B
Debit Interest Receivable, Credit Interest Revenue

C
Debit Cash, Credit Interest Revenue

D
Debit Note Receivable, Credit Interest Revenue

Note: not sure
1. Report
Question: An amount added to the cost of merchandise to establish the selling price is called:
A
markup

B
discount

C
rebate

D
terms of sale

Note: answer not sure
1. Report
Question: 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
Issue a credit on the correct account referencing the payment, apply the payment to the incorrect account and also apply a debit on the incorrect account with a note.

B
It is best to send the payment back to the customer and ask them to pay on the right account

C
Reverse the invoice from the correct account and create it on the incorrect account so the payment can be applied

D
Create a master account for the customer and make a policy that each customer can have only one account

Note: answer not sure
1. Report
Question: All of the following are true about interest receivable except
A
Interest Receivable is calculated by using the formula Interest= Principal x Interest Rate x Time

B
Interest Receivable is interest earned but not collected

C
Interest Receivable does not have to be recognized if interest will be collected in the next year

D
We need to recognize Interest Receivable to satisfy the matching principle

Note: answer not sure
1. Report
Question: 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 this service?
A
A credit to Accounts Receivable

B
A debit to Accounts Receivable

C
A credit to Service Revenue

D
A debit to Service Revenue

Note: answer not sure
1. Report
Question: To which column should Sales Discount be extended (transferred) on the work sheet?
A
Income statement credit column

B
Balance sheet debit column

C
Income statement debit column

D
Balance sheet credit column

Note: answer not sure
1. Report
Question: Which of the following will not improve the current ratio?
A
Issuing long-term debt to purchase inventory

B
Obtaining a short term loan to finance additional fixed assets

C
Selling common stock to reduce current liabilities.

D
Selling fixed assets to reduce accounts payable

Note: answer not sure
1. Report
Question: 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 Receivables are, respectively
A
365 days and $108,000

B
73 days and $120,000

C
73 days and $108,000

D
81 days and $108,000

Note: answer not sure
1. Report
Question: A system where inventory is not kept on hand but is ordered to fulfill orders once needed is
A
Just In Time

B
As Needed

C
FOB

D
Averaging

Note: answer not sure
1. Report
Question: An accrued revenue would be shown on the balance sheet as _____
A
a payable

B
a prepaid revenue

C
a receivable

D
unearned revenue

Note: answer not sure
1. Report

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Question: The adjusting journal entry to record accrued interest revenue is__________________

Question: An amount added to the cost of merchandise to establish the selling price is called:

Question: 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?

Question: All of the following are true about interest receivable except

Question: 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 this service?

Question: To which column should Sales Discount be extended (transferred) on the work sheet?

Question: Which of the following will not improve the current ratio?

Question: 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 Receivables are, respectively

Question: A system where inventory is not kept on hand but is ordered to fulfill orders once needed is

Question: An accrued revenue would be shown on the balance sheet as _____