Chapter 08 – Receivables
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Page 21
POINTS:
1
DIFFICULTY:
Bloom’s: Remembering
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.08–02 – LO: 08–02
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.12 – Receivables Reporting
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 6:23 PM
DATE MODIFIED:
10/16/2017 5:23 PM
55. An alternative name for Bad Debt Expense is
a.
collection expense
b.
credit loss expense
c.
uncollectible accounts expense
d.
deadbeat expense
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.08–02 – LO: 08–02
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.12 – Receivables Reporting
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 6:23 PM
DATE MODIFIED:
10/16/2017 5:23 PM
56. Two methods of accounting for uncollectible accounts are the
a.
direct write-off method and the allowance method
b.
allowance method and the accrual method
c.
allowance method and the net realizable method
d.
direct write-off method and the accrual method
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.08–02 – LO: 08–02
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.12 – Receivables Reporting
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
Copyright Cengage Learning. Powered by Cognero.
Page 26
66. On the balance sheet after adjusting entries are made, the amount shown for the Allowance for Doubtful Accounts is
equal to the
a.
uncollectible accounts expense for the year
b.
total of the accounts receivable written off during the year
c.
total estimated uncollectible accounts as of the end of the year
d.
sum of all accounts that are past due
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.08–04 – LO: 08–04
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.12 – Receivables Reporting
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 6:23 PM
DATE MODIFIED:
10/16/2017 5:23 PM
67. What is the type of account and normal balance of Allowance for Doubtful Accounts?
a.
contra asset, credit
b.
asset, debit
c.
asset, credit
d.
contra asset, debit
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.08–04 – LO: 08–04
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.06 – Recording Transactions
ACCT.ACBSP.APC.12 – Receivables Reporting
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 6:23 PM
DATE MODIFIED:
10/16/2017 5:23 PM
68. When the allowance method is used to account for uncollectible accounts, Bad Debts Expense is debited when
a.
a customer’s account becomes past due
b.
an account becomes bad and is written off
c.
a sale is made
d.
management estimates the amount of uncollectibles
ANSWER:
d
POINTS:
1
