1|Page
NAU ACC 205 FINAL EXAM ||VERIFIED EXAM!!|| MOST
RECENT EXAM ACTUAL COMPLETE REAL EXAM
QUESTIONS AND CORRECT ANSWERS (VERIFIED
ANSWERS) ALREADY GRADED A+ | GUARANTEED
SUCCESS!! NEWEST EXAM!!!
Which of the following should be classified as a long-term
asset? - Answer-Notes Receivable, due in 5 years
Separate customer accounts receivable are called
subsidiary accounts. - Answer-True
A receivable occurs when a business sells goods or
services to another party on account. - Answer-True
What are the three major types of receivables? - Answer-
accounts receivable, notes receivable, and other
receivables.
What are generally categorized as other receivables? -
Answer-Dividends receivable, interest receivable, and
taxes receivable
,2|Page
Alltech Company maintains a separate accounts
receivable account for each customer. On June 18, Alltech
provides
$5,600 of services on account to customer Anthony and
$1,600
of services on account to customer Walker. How will these
two transactions affect the control and subsidiary
accounts? - Answer-The control account, Accounts
Receivable, will be increased with a debit of
$7,200.
The collection period of accounts receivable is usually
long, and therefore, it is classified as a long-term asset on
the balance sheet. - Answer-False
Notes receivable represent a written promise that a party
will pay a fixed amount of principal plus interest on a
stated maturity date. - Answer-True
Which of the following is included in the category of other
receivables? - Answer-interest receivable
,3|Page
The payment terms for a note receivable are generally
longer than that of an account receivable. - Answer-True
A business that accepts payments by credit and debit
cards ________. - Answer-almost always pays a fee to the
processor to cover the processing costs
By accepting credit and debit cards, companies are able to
attract more customers. - Answer-True
The entry to write off an account receivable under the
allowance method will ________. - Answer-have no
effeect on net income
When using the allowance method, after a company has
previously written off an account, ________. - Answer-
when a customer pays on an account that has been
written off, the company needs to reverse the write-off to
the Allowance for Bad Debts account and then record the
receipt of cash
, 4|Page
The Allowance for Bad Debts account ___________ -
Answer-holds the pool of "unknown" uncollectible
accounts
When using the allowance method, the write-off of a
receivable ________. - Answer-reduces the amount of the
Allowance for Bad Debts account
A newly created design business, Teri's Art, is finishing its
first year of operations. During the year, credit sales were
$43,000 and collections of credit sales were $34,000. One
account for $675 was written off. Teri's Art uses the aging-
of-receivables method to account for bad debts expense.
It has estimated $200 as uncollectible at year-end. What is
the amount of the Bad Debts Expense for the first year of
operations? - Answer-$875
A business maintains a separate Accounts Receivable
account for each customer in order to account for
payments received from the customer and amounts still
owed by the customer. - Answer-True
Each receivable transaction involves two
parties—the
NAU ACC 205 FINAL EXAM ||VERIFIED EXAM!!|| MOST
RECENT EXAM ACTUAL COMPLETE REAL EXAM
QUESTIONS AND CORRECT ANSWERS (VERIFIED
ANSWERS) ALREADY GRADED A+ | GUARANTEED
SUCCESS!! NEWEST EXAM!!!
Which of the following should be classified as a long-term
asset? - Answer-Notes Receivable, due in 5 years
Separate customer accounts receivable are called
subsidiary accounts. - Answer-True
A receivable occurs when a business sells goods or
services to another party on account. - Answer-True
What are the three major types of receivables? - Answer-
accounts receivable, notes receivable, and other
receivables.
What are generally categorized as other receivables? -
Answer-Dividends receivable, interest receivable, and
taxes receivable
,2|Page
Alltech Company maintains a separate accounts
receivable account for each customer. On June 18, Alltech
provides
$5,600 of services on account to customer Anthony and
$1,600
of services on account to customer Walker. How will these
two transactions affect the control and subsidiary
accounts? - Answer-The control account, Accounts
Receivable, will be increased with a debit of
$7,200.
The collection period of accounts receivable is usually
long, and therefore, it is classified as a long-term asset on
the balance sheet. - Answer-False
Notes receivable represent a written promise that a party
will pay a fixed amount of principal plus interest on a
stated maturity date. - Answer-True
Which of the following is included in the category of other
receivables? - Answer-interest receivable
,3|Page
The payment terms for a note receivable are generally
longer than that of an account receivable. - Answer-True
A business that accepts payments by credit and debit
cards ________. - Answer-almost always pays a fee to the
processor to cover the processing costs
By accepting credit and debit cards, companies are able to
attract more customers. - Answer-True
The entry to write off an account receivable under the
allowance method will ________. - Answer-have no
effeect on net income
When using the allowance method, after a company has
previously written off an account, ________. - Answer-
when a customer pays on an account that has been
written off, the company needs to reverse the write-off to
the Allowance for Bad Debts account and then record the
receipt of cash
, 4|Page
The Allowance for Bad Debts account ___________ -
Answer-holds the pool of "unknown" uncollectible
accounts
When using the allowance method, the write-off of a
receivable ________. - Answer-reduces the amount of the
Allowance for Bad Debts account
A newly created design business, Teri's Art, is finishing its
first year of operations. During the year, credit sales were
$43,000 and collections of credit sales were $34,000. One
account for $675 was written off. Teri's Art uses the aging-
of-receivables method to account for bad debts expense.
It has estimated $200 as uncollectible at year-end. What is
the amount of the Bad Debts Expense for the first year of
operations? - Answer-$875
A business maintains a separate Accounts Receivable
account for each customer in order to account for
payments received from the customer and amounts still
owed by the customer. - Answer-True
Each receivable transaction involves two
parties—the
