Finance And Accounting

Question: Financial Statement ratio analysis may be undertaken to study liquidity, turnover, profitability, and other indicators. The current ratio indicates ___________________
A
liquidity

B
turnover

C
profitability

D
other indicators

Note: answer not sure
1. Report
Question: Use the following information to compute interest revenue. Notes receivable $10,000, due in 90 days with interest at 10%.
A
$1,000

B
$200

C
$246.58

D
None of these

Note: answer not sure
1. Report
Question: The net realizable value of Accounts Receivable is__________.
A
the total of the Individual accounts in the subsidiary ledger

B
Accounts Receivable minus allowance for Doubtful Accounts

C
Accounts Receivable minus Bad Debts Expense

D
the estimated amount of the accounts that will not be collected

Note: answer not sure
1. Report
Question: When a note receivable is dishonored, for which amount is Accounts Receivable debited?
A
The maturity value of the note plus accrued interest

B
The maturity value of the note

C
The face value of the note

D
The maturity value of the note less accrued interest

Note: answer not sure
1. Report
Question: 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?
A
Price

B
Payment Terms

C
Freight/ Delivery Charges

D
Payment due

Note: answer not sure
1. Report
Question: 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. If all the customers took advantage of the cash discount, the Receivables ________.
A
will be lower than the present level

B
will remain unchanged

C
will be higher than the present level

D
cannot be determined without more information

Note: answer not sure
1. Report
Question: Are adjustments to book interest earned but not received ever reversed?
A
Yes, immediately on the 1st of the following month

B
Yes, when the interest is actually paid

C
Never

D
Only if the interest exceeds $100

Note: answer not sure
1. Report
Question: 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
apply it starting with the oldest and move forward until fully applied

B
apply it to the newest invoices and charge them interest on the older, still open ones

C
spread it evenly between all open invoices

D
call the customer and ask them what invoices they are paying and/or how do they want the check applied

Note: answer not sure
1. Report
Question: The receipt of cash from a customer to clear his accounts would be recorded as___________.
A
debit to cash: credit to account receivable

B
debit to accounts payable; credit to cash

C
debit to accounts receivable; credit to cash

D
debit to cash; credit to accounts payable

Note: answer not sure
1. Report
Question: Bad Debts are shown on the following financial statements: _________
A
the Profit & Loss

B
the Profit & Loss & the Balance Sheet

C
the Balance Sheet and Statement of Equity

D
Cash Flow statement

Note: answer not sure
1. Report

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Question: Financial Statement ratio analysis may be undertaken to study liquidity, turnover, profitability, and other indicators. The current ratio indicates ___________________

Question: Use the following information to compute interest revenue. Notes receivable $10,000, due in 90 days with interest at 10%.

Question: The net realizable value of Accounts Receivable is__________.

Question: When a note receivable is dishonored, for which amount is Accounts Receivable debited?

Question: 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?

Question: 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. If all the customers took advantage of the cash discount, the Receivables ________.

Question: Are adjustments to book interest earned but not received ever reversed?

Question: 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:

Question: The receipt of cash from a customer to clear his accounts would be recorded as___________.

Question: Bad Debts are shown on the following financial statements: _________