Book keeping, Finance And Accounting

Question: An increase in a firm's receivable turnover ratio means that:
A
it is collecting credit sales more quickly than before

B
cash sales have decreased

C
it has initiated more liberal credit terms

D
it's inventories have increased

Note: answer not sure
1. Report
Question: The amount of cash reported in the financial statements is the closing balance of cash reported in the ______________.
A
check register before Bank Reconcilation

B
Bank Reconcilation

C
bank statement before Bank Reconcilation

D
None of these

Note: answer not sure
1. Report
Question: What is the primary goal of an Accounts Payable department?
A
To pay invoices immediately to avoid collection calls

B
To short pay invoices, knowing that some clients will not notice

C
To maintain an accurate AP record and pay invoices according to the company policy

D
To tell people who call that their check is in the mail, when it is not, in order to buy time

Note: answer not sure
1. Report
Question: If merchandise purchased on account is returned, the buyer may inform the seller of the details by issuing:
A
a credit memorandum

B
a bill

C
a debit memorandum

D
an invoice

Note: answer not sure
1. Report
Question: Which of the following is NOT a fundamental of accounting?
A
Materiality

B
Timeliness

C
Matching

D
Magnitude

Note: answer not sure
1. Report
Question: Which of these items would be accounted for as an expense?
A
Repayment of a bank loan.

B
Dividends to stockholders.

C
Purchase of land.

D
Payment of the current period's rent.

Note: answer not sure
1. Report
Question: The following comments relate to the recording of journal entries. Which statement is true?
A
For any given journal entry, debits must exceed credits.

B
It is customary to record credits on the left and debits on the right.

C
The chart of accounts reveals the amount to debit and credit to the affected accounts.

D
Journalization is the process of converting transactions and events into the debit/credit format.

Note: answer not sure
1. Report
Question: Refer to the given image: The proper journal entry to record Ransom & Co.'s billing of clients for $500 of services rendered is:
A
1

B
2

C
3

D
4

Note: answer not sure
1. Report
Question: Why do companies hold back paying invoices until due?
A
They forget to pay

B
They are managing their cash flow

C
They don't like taking discounts and saving money

D
They might decide not to pay if the vendor doesn't call

Note: answer not sure
1. Report
Question: Which of the following statements is true?
A
Cash discounts are used to reduce the invoice price below the stated list price.

B
The expression 2/30,n/60.means that a 2% cash discount is available if the invoice is paid within 30 to 60 days.

C
Cash discounts may not be used in conjunction with trade discounts.

D
Cash discounts normally apply to the invoice price of the merchandise, excluding freight charges.

Note: answer not sure
1. Report

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

Question: The amount of cash reported in the financial statements is the closing balance of cash reported in the ______________.

Question: What is the primary goal of an Accounts Payable department?

Question: If merchandise purchased on account is returned, the buyer may inform the seller of the details by issuing:

Question: Which of the following is NOT a fundamental of accounting?

Question: Which of these items would be accounted for as an expense?

Question: The following comments relate to the recording of journal entries. Which statement is true?

Question: Refer to the given image: The proper journal entry to record Ransom & Co.'s billing of clients for $500 of services rendered is:

Question: Why do companies hold back paying invoices until due?

Question: Which of the following statements is true?