BUS 212 WEEK 1 QUIZ
What type of receivable is evidenced by a formal instrument and normally requires
the payment of interest?
A note receivable
When is a receivable recorded by a service organization?
When service is provided on account
At what value are accounts receivable reported on the balance sheet?
Cash (net) realizable value
Short-term notes receivable are reported at their cash (net) realizable value.
True
Which one of these statements about promissory notes is incorrect?
A promissory note is not a negotiable instrument.
Which of the following should be classified as an “other” receivable?
Interest receivable
What type of receivables result from sales transactions?
Trade receivables
Which one of the following is not a method used by companies to accelerate cash
receipts?
Writing off receivables
What type of receivable is evidenced by a formal instrument and normally requires
the payment of interest?
A note receivable
When is a receivable recorded by a service organization?
When service is provided on account
At what value are accounts receivable reported on the balance sheet?
Cash (net) realizable value
Short-term notes receivable are reported at their cash (net) realizable value.
True
Which one of these statements about promissory notes is incorrect?
A promissory note is not a negotiable instrument.
Which of the following should be classified as an “other” receivable?
Interest receivable
What type of receivables result from sales transactions?
Trade receivables
Which one of the following is not a method used by companies to accelerate cash
receipts?
Writing off receivables
