a. A receivable arising from the sale of goods or services with a verbal promise to pay.
b. A form used to categorize the various individual accounts receivable according to the
length of time each has been outstanding.
c. A method of estimating bad debts on the basis of either the net credit sales of the
period or the accounts receivable at the end of the period.
d. A measure of the number of times receivables are collected in a period.
e. The general ledger account that is supported by a subsidiary ledger.
f. A contra-asset account used to reduce accounts receivable to its net realizable value.
g. The detail for a number of individual items that collectively make up a single general
ledger account.
h. The recognition of bad debts expense at the point an account is written off as
uncollectible. Control account
The Deferred Tax account should reflect permanent differences but not items that are
temporary differences between book accounting and tax reporting.
a. True
b. False
Most companies use the cash basis of accounting.
a. True
b. False
Horizontal analysis is analysis
a. of dollar changes and percentage changes over two or more years.
b. in which all items are presented as a percentage of one selected item on a financial
statement.
c. in which a statistic is calculated for the relationship between two items on a single
financial statement or for two items on different financial statements
d. of all ratios that increased or decreased over past accounting periods.
Rafter.com received a 10%, 90-day promissory note with a face amount of $12,000
from Joyce Company, for the sale of merchandise on November 1, 2014. A) Identify the
maturity date of the note. B) How much interest income (to the nearest whole month)
will Rafter.com earn over the term of the note? C) How much interest income will
Rafter.com recognize during 2014?
Select the letter of the term each statement best describes.
a. authorized shares
b. issued shares
c. outstanding shares
d. par value
e. additional paid-in capital
f. retained earnings
g. cumulative feature
h. participating feature
i. callable stock
j. treasury stock
k. retirement of stock
l. dividend payout ratio
m. stock dividend
n. stock split
o. market value per share
p. convertible stock
q. book value per share
An arbitrary amount stated on the face of the stock certificate that represents the legal
capital of the firm.
The cash flow adequacy ratio can only be calculated if a company uses the direct
method to report cash flows from operating activities.
a. True
b. False
Identify where each of the following accounts would be reported on CocaÂCola’s
financial statements.
a. Balance Sheet-Property, Plant, and Equipment
b. Balance Sheet-Intangible Assets
c. Balance Sheet-Current Assets
d. Balance Sheet-Other Assets
e. Income Statement-Operating Section
f. Income Statement-Other Revenue and Expense Section
g. Statement of Cash Flows
Total amortization since inception
From the following list, select the proper section from the statement of cashflows in whi
ch it would beclassified.
a. Operating Activities
b. Investing Activities
c. Financing Activities
Paid a cash dividend on capital stock
A company uses the same depreciation method as other firms in the same industry.
Because of this, investors will have enhanced comparability of the financial reporting
results.
a. True
b. False
a. A receivable arising from the sale of goods or services with a verbal promise to pay.
b. A form used to categorize the various individual accounts receivable according to the
length of time each has been outstanding.
c. A method of estimating bad debts on the basis of either the net credit sales of the
period or the accounts receivable at the end of the period.
d. A measure of the number of times receivables are collected in a period.
e. The general ledger account that is supported by a subsidiary ledger.
f. A contra-asset account used to reduce accounts receivable to its net realizable value.
g. The detail for a number of individual items that collectively make up a single general
ledger account.
h. The recognition of bad debts expense at the point an account is written off as
uncollectible. Account receivable
In a sound internal control system, all cash receipts should be deposited daily intact.
a. True
b. False
All of the following statements are true except :
a. Both U.S. GAAP and international financial reporting standards (IFRS) require the
use of the lower-of-cost- or-market rule to value inventories.
b. U.S. GAAP defines market value as replacement cost.
c. IFRS uses net realizable value with no upper or lower limits imposed.
d. Write-downs of inventory can be reversed in later periods under U.S. GAAP.