Questions from Financial Accounting

Q: A company sells on credit terms of “2/10,

A company sells on credit terms of “2/10, n/30” and has days’ sales in account receivableof 30 days. Its days’ sales in receivables is a. Too low. b. Too high. c. About right. d. Not able to be evalua...

Q: In a bank reconciliation, interest revenue earned on your bank balance

In a bank reconciliation, interest revenue earned on your bank balance is a. Deducted from the book balance. b. Added to the bank balance. c. Added to the book balance. d. Deducted from the bank balan...

Q: During the fourth quarter of2012, Spring, Inc., generated excess

During the fourth quarter of2012, Spring, Inc., generated excess cash, which the company invested in trading securities as follows: 2012 Nov 16Purchased 1,300 common shares as an investment in trading...

Q: Lance Products,Inc., makes all sales on account. Selena

Lance Products,Inc., makes all sales on account. Selena Camp, accountant for the company, receives and opensincoming mail. Company procedure requires Camp to separate customer checks from the remittan...

Q: This problem takes you through the accounting forsales, receivables, and

This problem takes you through the accounting forsales, receivables, and uncollectibles for Quick Mail Corp., the overnight shipper. By selling on credit,the company cannot expect to collect 100% of i...

Q: The September 30,2013, records of Up-To-

The September 30,2013, records of Up-To-Date Communications include these accounts: Accounts Receivable.................................... $243,000 Allowance for Doubtful Accounts......................

Q: Assume Adams & Murray, theaccounting firm, advises Pappadeaux Seafood that

Assume Adams & Murray, theaccounting firm, advises Pappadeaux Seafood that its financial statements must be changed toconform to GAAP. At December 31, 2012, Pappadeaux’s accounts include the following...

Q: Yummy Foods completed thefollowing selected transactions. 2012 Oct 31

Yummy Foods completed thefollowing selected transactions. 2012 Oct 31 Sold goods to Bob’s Foods, receiving a $36,000, three-month, 6% note. Dec 31 Made an adjusting entry to accrue interest on the Bob...

Q: The comparative financial statements of True Beauty Pools, Inc., for

The comparative financial statements of True Beauty Pools, Inc., for 2013,2012, and 2011 included the following select data: Requirements 1. Compute these ratios for 2013 and 2012: a. Current ratio...

Q: On December 23, 2012, Big Sky Sports Manufacturing sells a

On December 23, 2012, Big Sky Sports Manufacturing sells a truckload of sporting goods to the Sports R Us store in Amarillo, Texas. The terms of the sale are FOB destination. The truck runs into bad w...