40218 | Course Paper

4/24/2018 Review Test Submission: ACC 2012 Credit for Prior Learning …

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Review Test Submission: ACC 2012 Credit for Prior Learning Post Test

ECTC_4176_ACC_201_26VA_75001_Hybrid

Module 2 ACC 2012

Review Test Submission: ACC 2012 Credit for Prior Learning Post Test

User Muhanad Abdalghani

Course ACC 201: Financial Accounting(4176_26VA)

Test ACC 2012 Credit for Prior Learning Post Test

Started 4/24/18 1:02 AM

Submitted 4/24/18 3:00 AM

Status Needs Grading

Attempt Score Grade not available. 

Time Elapsed 1 hour, 58 minutes out of 3 hours

Question 1

Freight-in is considered a cost of purchasing inventory.

Question 2

The effect of a sales return and allowance is a reduction in sales revenue and a decrease in cash or accounts receivable.

Question 3

When a large quantity of merchandise is purchased, a reduction allowed on the sale price is called a trade discount.

Question 4

When the seller offers a sales discount, even if borrowing has to be done, it is generally advantageous for the buyer to pay within the

discount period.

Question 5

If ending inventory for the year is understated, net income for the year is overstated.

Question 6

Safeguarding inventory and proper reporting of the inventory in the books are the reasons for controlling the inventory.

Question 7

Generally, the lower the number of days’ sales in inventory, the better.

Question 8

During periods of rapidly rising costs, the use of the LIFO method results in illusory or inventory profits.

Question 9

Cash equivalents are short -term investments that will be converted to cash within 120 days.

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6 out of 6 points

Muhanad Abdalghani

4/24/2018 Review Test Submission: ACC 2012 Credit for Prior Learning …

Question 10

For efficiency of operations and better control over cash, a company should maintain only one bank account.

Question 11

A compensating balance occurs when a bank may require a company to maintain a maximum cash balance.

Question 12

In preparing a bank reconciliation, the amount indicated by a credit memo for a note receivable collected by the bank is added to the

balance per company’s records.

Question 13

Trade receivables occur when two companies trade or exchange notes receivables.

Question 14

The number of days’ sales in receivables is an estimate of the length of time the accounts receivables have been outstanding.

Question 15

The maturity value of a 12%, 60-day note for $5,000 is $5,600.

Question 16

The direct write-off method records Bad Debt Expense in the year the specific account receivable is determined to be uncollectible.

6 out of 6 points