Questions from Financial Accounting

Q: All of the following are ways in which receivables are commonly distinguished

All of the following are ways in which receivables are commonly distinguished except a. Collectible or uncollectible. b. Trade or nontrade receivable. c. Current or noncurrent. d. Accounts or notes re...

Q: Internal controls play a crucial role in a business. Required

Internal controls play a crucial role in a business. Required: Discuss why internal controls are important. What are the potential consequences of an internal control failure?

Q: Which one of the following best describes the allowance for doubtful accounts

Which one of the following best describes the allowance for doubtful accounts? a. Cash flow account b. Income statement account c. Contra-account d. Liability account

Q: If a company uses the direct write-off method of accounting

If a company uses the direct write-off method of accounting for bad debts, a. It will report accounts receivable on the balance sheet at their net realizable value. b. It is applying the matching prin...

Q: Gordon’s Grocers purchases bread from Buddy’s Bread Company at $1.

Gordon’s Grocers purchases bread from Buddy’s Bread Company at $1.45 per loaf. Gordon’s recently engaged in a customer service contract with Buddy’s to purchase 20,000 loaves of Buddy’s bread. Buddy o...

Q: Which of the following best describes the objective of estimating bad debt

Which of the following best describes the objective of estimating bad debt expense with the percentage of credit sales method? a. To estimate the amount of bad debt expense based on an aging of accoun...

Q: Which of the following best describes the concept of the aging method

Which of the following best describes the concept of the aging method of receivables? a. An accurate estimate of bad debt expense may be arrived at by multiplying historical bad debt rates by the amou...

Q: The aging method is closely related to the a. Income

The aging method is closely related to the a. Income statement. b. Balance sheet. c. Statement of cash flows. d. Statement of retained earnings.

Q: The percentage of credit sales approach is closely related to the

The percentage of credit sales approach is closely related to the a. Income statement. b. Balance sheet. c. Statement of retained earnings. d. Statement of cash flows.

Q: The process by which firm’s package factored receivables as financial instruments or

The process by which firm’s package factored receivables as financial instruments or securities and sell them to investors is known as a. Credit extension. b. Bundling. c. Aging of accounts receivable...