Accounting review quiz1. Notes Receivable and Accounts Receivable can also be called trade receivables. (Points: 1)TrueFalse2. Receivables from company owners and officers should be disclosed separately on the balance sheet. (Points: 1)TrueFalse3. Other receivables include non trade receivables such as loans to company officers. (Points: 1)TrueFalse4. When companies sell their receivables to other companies, the transaction is called factoring (Points: 1)TrueFalse5. Of the two methods of accounting for uncollectible receivables, the allowance method provides in advance for uncollectible receivables. (Points: 1)TrueFalse6. Generally accepted accounting principles do not normally allow the use of the direct write-off method of accounting for uncollectible accounts. (Points: 1)TrueFalse7. The direct write-off method records Bad Debt Expense in the year the specific account receivable is determined to be uncollectible. (Points: 1)TrueFalse8. Allowance for Doubtful Accounts is debited under the direct write-off method when an account is determined to be uncollectible. (Points: 1)TrueFalse9. Under the direct write-off method, no attempt is made to match Bad Debt Expense to Sales Revenue in the same accounting period. (Points: 1)TrueFalse10. The estimate based on sales method violates the matching principle. (Points: 1)TrueFalse11. When the estimate based on analysis of receivables is used, income is reduced when a specific receivable is written off. (Points: 1)TrueFalse12. When an account receivable that has been written off is subsequently collected, the account receivable is said to be reinstated. (Points: 1)TrueFalse13. Allowance for Doubtful Accounts is a liability account. (Points: 1)TrueFalse14. At the end of a period, before the accounts are adjusted, Allowance for Doubtful Accounts has a debit balance of $2,000. If the estimate of uncollectible accounts determined by aging the receivables is $30,000, the current provision to be made for uncollectible accounts expense is $30,000. (Points: 1)TrueFalse15. When using the estimate based on analysis of receivables, the amount computed in the analysis is always the required amount that would be recorded in the adjusting entry. (Points: 1)TrueFalse16. The Allowance for Doubtful Accounts is similar to Accumulated Depreciation in that the account represents the total of all accounts written-off since the beginning year. (Points: 1)TrueFalse17. The equation for computing interest on an interest-bearing note is as follows: interest equals maturity value times interest rate times time. (Points: 1)TrueFalse18. The due date of a 60-day note dated July 10 is September 10. (Points: 1)TrueFalse19. The maturity value of a note receivable is always the same as its face value. (Points: 1)TrueFalse20. The interest on a 6%, 60-day note for $5,000 is $300. (Points: 1)TrueFalse
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