Indiana University BUS-A 201 Exam 2 Review Questions With Answers.

Indiana University BUS-A 201 || || || ||




Exam 2 Review Questions With || || || || ||




Answers ||




Aging Method - CORRECT ANSWER(S)✔✔Different
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percentages based on age of receivables determines end || || || || || || || ||



of period balance in allowance for doubtful accounts.
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% of Sales Method - CORRECT ANSWER(S)✔✔Taking a
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% of all credit sales as Bad Debt Expense.
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Net Sales - CORRECT ANSWER(S)✔✔Top Line of Income
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Statement
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FOB - CORRECT ANSWER(S)✔✔Free on Board
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FOB Shipping Point - CORRECT ANSWER(S)✔✔Title
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changes hands at shipment, and buyer pays for shipping.
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FOB Destination - CORRECT ANSWER(S)✔✔Title
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changes hands at delivery, and the seller usually pays for
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shipping.
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, Credit Card Discount - CORRECT ANSWER(S)✔✔Credit
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Card Fee
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Sales Returns and Allowances - CORRECT
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ANSWER(S)✔✔Returned items already accounted for in || || || || || ||



revenues


Trade Recievable - CORRECT ANSWER(S)✔✔Normal
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course of business || ||




Non-Trade Recievable - CORRECT ANSWER(S)✔✔Not in || || || || || ||



normal course of business.
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Receivables turnover Ratio - CORRECT || || || || ||



ANSWER(S)✔✔Net Sales / Average NET Trade || || || || || ||



Recievables


Average Collection Period - CORRECT|| || || || ||



ANSWER(S)✔✔365 / Receivables Turnover Ratio || || || ||




Perpetual Bookkeeping System - CORRECT || || || || ||



ANSWER(S)✔✔Purchase transactions are recorded || || || ||



directly in n inventory account. When a sale is recorded,
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