Which of the following statements is correct in comparison of "accounts receivable" to "notes receivable"? Multiple Choice Notes Receivable have a subsidiary ledger but Accounts Receivable do not None of the other alternatives are correct Accounts Receivable is a more formalized form of debt compared to Notes Receivable Accounts Receivable always has an interest component whereas Notes Receivable do not Notes Receivable is a more formalized form of debt compared to Accounts Receivable

Which of the following statements is correct in comparison of "accounts receivable" to "notes receivable"? Multiple Choice Notes Receivable have a subsidiary ledger but Accounts Receivable do not None of the other alternatives are correct Accounts Receivable is a more formalized form of debt compared to Notes Receivable Accounts Receivable always has an interest component whereas Notes Receivable do not Notes Receivable is a more formalized form of debt compared to Accounts Receivable

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 9MC: Which method delays recognition of bad debt until the specific customer accounts receivable is...

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Which of the following statements concerning receivables is correct? Notes receivable are often listed after short-term investments. Both the gross amount of receivables and the allowance for doubtful accounts should be reported. O Interest revenue and gain on sale of notes receivable are shown under other revenues and gains. O All of these answer choices are correct.
All of the following are ways in which receivables are commonly classified in financial statements except: a.collectible or uncollectible. b.current or noncurrent. c.trade or nontrade receivable. d.accounts or notes receivable.
Which of the following is not a correct statement? Accounts receivable represents credit sale, and thus, cannot be collected until maturity. Accounts receivable mainly consists of promissory notes and credit sales. Accounts receivable is part of the current assets. Accounts payable mainly consists of purchase of inventory on credit and notes payable. Accounts payable is part of the current liabilities.
Which of the following is false about the discount on short-term notes payable? The Discount on Notes Payable account has a debit balance. The Discount on Notes Payable account should be reported as an asset on the balance sheet. If there is a discount on notes payable, the effective interest rate is higher than the stated discount rate. All of these are true
Which of the following statements is true? Group of answer choices Companies typically report gross receivables on the balance sheet and disclose net receivables and the allowance for uncollectible accounts in the notes to the financial statements. Companies typically report net receivables on the balance sheet and disclose gross receivables and the allowance for uncollectible accounts in the notes to the financial statements. Companies typically report gross receivables and the allowance for uncollectible accounts on the balance sheet and disclose net receivables in the notes to the financial statements. Companies typically report net receivables and the net allowance for uncollectible accounts on the balance sheet and disclose gross receivables in the notes to the financial statements.
Which account type is used to record bad debt estimation and is a contra account to Accounts Receivable?
Which method delays recognition of bad debt until the specific customer accounts receivable is identified? A. income statement method B. balance sheet method C. direct write-off method D. allowance method
1. Which of the following statements is incorrect regarding the classification of accounts and notes receivable? a. Valuation accounts should be appropriately offset against the proper receivable accounts. b. Segregation of the different types of receivables is required if they are material. c. Disclose any loss contingencies that exist on the receivables. d. Any discount or premium resulting from the determination of present value in notes receivable transactions is an asset or liability respectively. 2. Which of the following is an appropriate reconciling item to the balance per bank in a bank reconciliation? a. Bank service charge b. Chargeback for NSF check c. Deposit in transit d. Bank interest 3. Which of the following is not true? a. The Petty Cash account is debited when the fund is replenished. b. The imprest petty cash system in effect adheres to the rule of disbursement by check. c. Entries are made to the Petty Cash account only to increase or decrease the size of the…
Organizations have to plan and account for uncollectible debt. Does estimating uncollectible accounts help to improve the accuracy of financial statements? If so, explain how by examining some of the factors that go into this estimation. Examine the difference between accounts receivable and notes receivable. How does each play into the previous questions?
Which of the following expresses the distinction between accounts receivable and notes receivable? Accounts receivable requires payment of interest; notes receivable does not. Notes receivable generally specifies an interest rate and a maturity date at which any interest and principle must be repaid; accounts receivable does not. Notes receivable results from credit sale transactions for merchandising companies; accounts receivable results from credit sale transactions for service companies. Accounts receivable usually includes current assets; notes receivable usually includes noncurrent assets.
What would be incorrect about reporting accounts receivable in the balance sheet? Presenting accounts receivable net of allowance for doubtful accounts. Presenting accounts receivable at estimated net realizable value. Presenting accounts receivable at gross amount, less allowance for doubtful accounts. Presenting accounts receivable in the current asset section. Presenting accounts receivable less bad debt expense and write-offs.
Matching Select the term that best fits each of the following definitions and descriptions. a. Notes receivable b. Nontrade receivables c. Net realizable value d. Direct write-off method e. Interest-bearing note f. Maturity date g. Promissory note h. Factoring receivables i. Trade discount j. Present value k. Allowance method l. Sales discount m. Negotiable note n. Non-interest-bearing note o. Assignment of receivables p. Valuation date 11. A method of recognizing the actual losses from uncollectible accounts as expenses during the period in which the receivables are determined to be uncollectible. 12. The amount of cash expected to be received from the conversion of assets in the normal course of business. 13. The sale of receivables without recourse for cash to a third party, usually a bank or other financial institution. 14. Receivables that are evidenced by…