ACC 291 Week 1 Practice Quiz
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Practice Question 01
What type of receivable is evidenced by a formal instrument and normally requires the payment of interest?
|A trade receivable|
|An account receivable|
|A note receivable|
|Past-due accounts receivables|
When is a receivable recorded by a service organization?
|When service is provided on account|
|When the related expenses are incurred|
|When the bill is sent to the customer|
|When the customer pays|
Practice Question 10
At what value are accounts receivable reported on the balance sheet?
|Cash (net) realizable value|
|Fair market value|
Practice Question 21
Short-term notes receivable are reported at their cash (net) realizable value.
Practice Question 25
Which one of these statements about promissory notes is incorrect?
|The party to whom payment is to be made is called the payee.|
|The party making the promise to pay is called the maker.|
|A promissory note is not a negotiable instrument.|
|A promissory note is more liquid than an account receivable.|
Which of the following should be classified as an “other” receivable?
Practice Question 03
What type of receivables result from sales transactions?
Which one of the following is not a method used by companies to accelerate cash receipts?
|Offering discounts for early payment|
|Writing off receivables|
|Selling receivables to a factor|
|Accepting national credit cards for customer purchases|
Which of the following accounts is debited when a company factors its accounts receivable?
|Service Charge Expense|
|Loss on Sale of Accounts Receivable|
Which of the following is the value at which loans and receivables should be reported under IFRS?
|Cash realizable value|
|Net of bad debt expense|