Cash and Receivables?

-Question 1



When we use the allowance method we need two journal entries to record collection after write-off

Answer

A.True

B.False



Question 2



We need to reverse the write off journal entry to record the collection of an accounts receivable written off previously.

Answer

A.True

B. False



Question 3



Days' Sales Uncollected

Answer

A. 365 days divided by Receivable Turnover

B. Sales divided by Receivables

C. Receivables divided by Sales

D. Receivable Turnover divided by 365 days



.Question 4



When we use the percentage of Sales method

Answer

A. the balance in receivable will be multiplied by a certain percentage

B. is the same as accounts receivable aging method

C. the balance in the Allowance uncollectible account should be subtracted

D. We multiply the percentage with sales and prepare the journal entry



.Question 5



Receivables may arise from

Answer

A. borrowing money

B. credit sale

C. paying expenses

D. purchases



.Question 6



Allowance for uncollectable accounts is

Answer

A. doesn't match revenue and expenses

B. is not acceptable by Generally Accepted Accounting Principles

C. is acceptable by Generally Accepted Accounting Principles

D. the same as the direct write-off method.



Question 7



To calculate the amount for the Allowance for uncollectible account, we can use the following two methods

Answer

A. Sales method and receivables method

B. Purchase and payable method

C. accounts payable method

D. no method available for us



Question 8



To write off a receivable we debit the Allowance for uncollectible account and credit Accounts Receivable

Answer

A. True

B. False



Question 9



Receivable turnover

Answer

A. Net Sales multiplied by Average Net Accounts Receivable

B. Net Sales divided by Average Net Accounts Receivable

C. Net Sales minus by Average Net Accounts Receivable

D. Net Sales plus by Average Net Accounts Receivable



Question 10



Cash and cash equivalent includes

Answer

A. Short term highly liquid investments

B. only currency

C. long term investment

D. long term assets1. A.True

2. A.True

3. A. 365 days divided by Receivable Turnover

4. D. We multiply the percentage with sales and prepare the journal entry

5. B. credit sale

6. C. is acceptable by Generally Accepted Accounting Principles

7. A. Sales method and receivables method

8. A. True

9. B. Net Sales divided by Average Net Accounts Receivable

10. A. Short term highly liquid investments



Good Luck and Have a Nice Day!