38) 38) A receivable occurs when a business, A) loans money to another party B) sells goods or services to another party on account C) has a monetary claim against a business or individual D) All of the statements are correct.

38) 38) A receivable occurs when a business, A) loans money to another party B) sells goods or services to another party on account C) has a monetary claim against a business or individual D) All of the statements are correct.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 1MC: Which of the following is not a criterion to recognize revenue under GAAP? A. The earnings process...

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Similar questions

Amounts owed by external parties generally as a result of the entity providing goods or services to the external parties are known as ________ . 1) bad debts 2) accounts receivable 3) bad debts expense 4) accounts payable
Receivables are amounts due from others that arise from the sale of goods or services. Select one: True False
A receivable is an amount due from another party. O True O False
When does a company record the transfer of accounts receivable as a sale? As a secured borrowing (a liability)?
If the transferor of receivables surrenders control over them, the transaction involving receivables is treated as a sale, and any gain or loss is recognized in earnings. Select one: O True False
4 - Which of the following receivables is allocated for?A) Receivables from partnersB) Receivables with surety C) Receivables from personnel D) Claims in lawsuits and execution proceedings E) Secured receivables
Which of the following is included under the financing activities in the statement of cash flows? O Payment of salaries to employees O Proceeds from sale of equipment Purchase of new office computers O Withdrawal of cash made by the owner
8. The timing of income from services can often be controlled through the use of: a.U.S. GAAP accounting. b.The cash method of accounting. c.Service accounting. d.The accrual method of accounting. e.IFRS accounting. 9. The primary purpose of the imputed interest rules is to prevent income shifting via interest-free loans. True False
10. 11. 12 13 14. Which accounting method for depreciation would you use if you wanted your taxes to be the lowest: 15. A. B. C. D. A. B. C. D. In times of rising prices, which inventory method would you want to use if you were an CEO interested in issuing a new stock offer: ABCD 200% Double Declining Balance. MACRS A. Straight Line Depreciation. Sum of the years Digits. Which method is used to expense operating assets? Depletion Amortization C. Depreciation D. Write off method B. LIFO Average FIFO None of the above What is the LCM rule concerning the valuation of inventories. A. Last in cost rule. B. Lower of cost or MACRS C. A rule that requires a company to value its inventory at market value If its market price is lower than its cost. D. Can be used in place of FIFO. SHORT ESSAY Why is the perpetual inventory system superior to the periodic system for business purposes? What are the two allowance methods used to account for bad debts. Explain who would be most interested in each…
Give one word or a term used to describe the following: a) An allowance by a creditor to debtor for prompt payment.b) Commodities in which a business deals. c) An obligation which may or may not materialise.d)An exchange of benefit for value.e) Things of value owned by business to earn future profits. f) Assets like brand value, copy rights, goodwill.
What is an account payable? .... OA. It is a liability for goods or services purchased on credit and supported by the credit standing of the purchaser. B. It is an amount of money to be received from a supplier. OC. It is a liability for goods or services purchased on credit and supported by a written agreement. OD. It is an asset arising from the sale of goods or services on credit.
5. TRUE OR FALSE. If assignment of receivables is made under a notification basis, the company, the assignor records any collection from its client ahead of the financing institution.