Finance And Accounting

Question: The Method of recording bad debt expenses is known as the____________________
A
Bad Debt Method

B
Allowance Method

C
Expenses Method

Note: answer not sure
1. Report
Question: Is the Accounts Receivable department considered "revenue generating"?
A
Yes, it is the connection between the company and the customer

B
Yes, as AR handles all payments, it handles the revenue in the true sense

C
Yes, without an AR department, no revenue would be collected

D
No, it is part of the accounting operation function and is an overhead expense

Note: answer not sure
1. Report
Question: Costs that does not carry enough inventory include_______.
A
lost sales

B
customer disappointment

C
possible worker layoffs

D
All of these

Note: answer not sure
1. Report
Question: 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 the second month following the sale. The anticipated sales for January through April are $400,000, $500,000, $600,000, and $400,000 respectively. What will be the cash receipts in the month of April?
A
$120,000

B
$400,000

C
$498,000

D
$530,000

Note: answer not sure
1. Report
Question: 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 servicing the note are immaterial. If the provisions of SFAS 140 are followed, the amount of gain or loss that the former should recognize on this transfer of a partial interest _________ .
A
($80,000)

B
$0

C
$320,000

D
$400,000

Note: answer not sure
1. Report
Question: Most of the companies expect that over ____ of their billings will be collected.
A
99.0%

B
99.5%

C
99.9%

D
None of these

Note: answer not sure
1. Report
Question: A company would choose to factor it's receivables because:
A
it is the same as turning them over to a collection agency

B
they need to raise capital and do not want to rely on the credit worthiness of the business

C
they have given up hope of ever collecting on the items

D
it is easier than trying to collect themselves

Note: answer not sure
1. Report
Question: Why is it important to review and analyze AR ratios?
A
You can compare your performance with industry standards

B
You can compare your performance with that of the other companies

C
You can compare your current results with the past results

D
All of these

Note: answer not sure
1. Report
Question: 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 proceeds of $432,000 after deduction of a Scholastic, including interest for 1 month on the remittance. By what amount will Accounts Receivable be assigned and notes payable decreased? A/R Assigned Notes Payable
A
$80,000 $74,750

B
$80,000 $80,000

C
$72,000 $74,750

D
$74,750 $80,000

Note: answer not sure
1. Report
Question: 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 Receivable will be:
A
$107,000

B
$100,000

C
$93,000

D
$7,000

Note: answer not sure
1. Report

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Question: The Method of recording bad debt expenses is known as the____________________

Question: Is the Accounts Receivable department considered "revenue generating"?

Question: Costs that does not carry enough inventory include_______.

Question: Most of the companies expect that over ____ of their billings will be collected.

Question: A company would choose to factor it's receivables because:

Question: Why is it important to review and analyze AR ratios?

Question: 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 Receivable will be: