Miss Natalia
$20/per page/Negotiable
1)What type of receivable is evidenced by a formal instrument and normally requires the payment of interest
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An account receivable |
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Past-due accounts receivables |
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A trade receivable |
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A note receivable |
2) When is a receivable recorded by a service organization?
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When the related expenses are incurred |
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When the bill is sent to the customer |
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When the customer pays |
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When service is provided on account |
3) At what value are accounts receivable reported on the balance sheet?
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Present value |
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Cash (net) realizable value |
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Fair market value |
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Maturity value |
4) Short-term notes receivable are reported at their cash (net) realizable value.
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True |
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False |
5) Which one of these statements about promissory notes is incorrect?
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The party making the promise to pay is called the maker. |
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The party to whom payment is to be made is called the payee. |
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A promissory note is not a negotiable instrument. |
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A promissory note is more liquid than an account receivable. |
6) Which of the following should be classified as an “other” receivable?
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Trade receivables |
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Interest receivable |
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Accounts receivable |
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Notes receivable |
7) What type of receivables result from sales transactions?
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Long-term receivables |
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Trade receivables |
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Non-trade receivables |
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Other receivables |
8) Which one of the following is not a method used by companies to accelerate cash receipts?
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Accepting national credit cards for customer purchases |
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Writing off receivables |
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Selling receivables to a factor |
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Offering discounts for early payment |
9) Which of the following accounts is debited when a company factors its accounts receivable?
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Interest Expense |
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Loss on Sale of Accounts Receivable |
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Accounts Receivable |
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Service Charge Expense |
10) Which of the following is the value at which loans and receivables should be reported under IFRS?
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Net of bad debt expense |
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Cash realizable value |
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Amortized cost |
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Maturity value |