ACG 2021 Patterson Exam 3 Final Test
Questions and All Actual Detailed
Answers 2025-2026 Updated.
At what value are accounts receivable reported on the balance sheet? - Answer Net
realizable value
The five basic issues in accounting for notes receivable are - Answer 1) determining the
maturity date,
2) computing interest,
3) recognizing notes receivable,
4) valuing notes receivable, and
5) disposing of notes receivable.
Michael Co. accepts a $4,000, 3-month, 12% promissory note in settlement of an account with
Tony Co. Michael Co. records this transaction as - Answer a debit to Notes Receivable for
$4,000 and a credit Accounts Receivable for $4,000.
Which one of the following is not one of the principles of managing accounts receivable?
Determining from which vendor credit should be requested
Evaluating the liquidity of receivables
Establishing a payment period
Monitoring collections
Accelerating cash receipts from receivables when necessary - Answer determining from
which vendor credit should be requested
Which of these statements about national credit card (e.g., Visa) sales is incorrect?
The retailer receives more cash when customers use national credit cards than when customers
pay with cash instead of credit cards.
The retailer receives payment from the issuer upon notifying the issuer.
A retailer's acceptance of a national credit card is a form of factoring the receivable by the
retailer.
, The retailer considers sales involving the use of a national credit card to be cash sales.
The retailer does not have to assess the customer's credit worthiness when the customer uses a
national credit card. - Answer The retailer receives more cash when customers use national
credit cards than when customers pay with cash instead of credit cards.
what two accounts are debited when accounts receivable are factored. - Answer Service
Charge Expense and Cash
When is a physical inventory usually taken? - Answer At the end of the company's fiscal year
When terms are FOB shipping point - Answer ownership of the goods passes to the buyer
when the public carrier accepts the goods from the seller.
Which one of the following statements is true?
-A manufacturing company will normally have raw materials, work in process, and merchandise
inventory as inventory account classifications.
-A manufacturing company will normally have raw materials, work in process, and finished
goods as inventory account classifications.
-A merchandising company will normally have raw materials, work in process, and finished
goods as inventory account classifications.
-A merchandising company will normally have raw materials and merchandise inventory as
inventory account classifications.
-none of these - Answer A manufacturing company will normally have raw materials, work in
process, and finished goods as inventory account classifications.
Cecil gives goods on consignment to Jerry who agrees to try to sell them for a 25% commission.
At the end of the accounting period, the goods have not been sold. Which of the following
parties includes in its inventory the consigned goods? - Answer Cecil
Ownership remains with Cecil, so Cecil reports the goods as assets. Jerry is not the owner of the
goods even though he has physical possession.
Questions and All Actual Detailed
Answers 2025-2026 Updated.
At what value are accounts receivable reported on the balance sheet? - Answer Net
realizable value
The five basic issues in accounting for notes receivable are - Answer 1) determining the
maturity date,
2) computing interest,
3) recognizing notes receivable,
4) valuing notes receivable, and
5) disposing of notes receivable.
Michael Co. accepts a $4,000, 3-month, 12% promissory note in settlement of an account with
Tony Co. Michael Co. records this transaction as - Answer a debit to Notes Receivable for
$4,000 and a credit Accounts Receivable for $4,000.
Which one of the following is not one of the principles of managing accounts receivable?
Determining from which vendor credit should be requested
Evaluating the liquidity of receivables
Establishing a payment period
Monitoring collections
Accelerating cash receipts from receivables when necessary - Answer determining from
which vendor credit should be requested
Which of these statements about national credit card (e.g., Visa) sales is incorrect?
The retailer receives more cash when customers use national credit cards than when customers
pay with cash instead of credit cards.
The retailer receives payment from the issuer upon notifying the issuer.
A retailer's acceptance of a national credit card is a form of factoring the receivable by the
retailer.
, The retailer considers sales involving the use of a national credit card to be cash sales.
The retailer does not have to assess the customer's credit worthiness when the customer uses a
national credit card. - Answer The retailer receives more cash when customers use national
credit cards than when customers pay with cash instead of credit cards.
what two accounts are debited when accounts receivable are factored. - Answer Service
Charge Expense and Cash
When is a physical inventory usually taken? - Answer At the end of the company's fiscal year
When terms are FOB shipping point - Answer ownership of the goods passes to the buyer
when the public carrier accepts the goods from the seller.
Which one of the following statements is true?
-A manufacturing company will normally have raw materials, work in process, and merchandise
inventory as inventory account classifications.
-A manufacturing company will normally have raw materials, work in process, and finished
goods as inventory account classifications.
-A merchandising company will normally have raw materials, work in process, and finished
goods as inventory account classifications.
-A merchandising company will normally have raw materials and merchandise inventory as
inventory account classifications.
-none of these - Answer A manufacturing company will normally have raw materials, work in
process, and finished goods as inventory account classifications.
Cecil gives goods on consignment to Jerry who agrees to try to sell them for a 25% commission.
At the end of the accounting period, the goods have not been sold. Which of the following
parties includes in its inventory the consigned goods? - Answer Cecil
Ownership remains with Cecil, so Cecil reports the goods as assets. Jerry is not the owner of the
goods even though he has physical possession.
