Uark Accounting Exam 4 Study Guide Questions With
Complete Solutions
Accounting bucket Correct Answers Determined allowance in
case someone does not pay the company
Accounts and notes receivable Correct Answers Reported as
assets on the balance sheet
Accounts receivable Correct Answers Buy now, pay later
Accounts receivable turnover Correct Answers Net credit sales
÷ average accounts receivable
Allowance for doubtful accounts Correct Answers Used to
separate actual A/R balance from net realizable value
Allowance percent of receivables Correct Answers Balance
sheet approach
Allowance percent of revenue Correct Answers Income
statement approach
Amortization Correct Answers Repayment of principal in
regular payments
Amortization/impairment Correct Answers Applied to
intangibles (copyrights, patents, franchises)
AR is on Correct Answers Balance sheet
, Bad debt Correct Answers Someone is not going to pay
Bond certificates Correct Answers Issued when borrowing
from public
Bond discount Correct Answers Selling price < face value
Bond premium Correct Answers Selling price > face value
Bondholder Correct Answers Buyer/lender
Book value Correct Answers Carrying value of asset
Capitalized costs Correct Answers Costs that improve or
extend asset life
Collateral Correct Answers Assets pledged as security for
payment
Collateral definition Correct Answers Assets pledged as
security
Contingent liability (possible or probable but not estimable)
Correct Answers Disclose in notes
Contingent liability (probable & estimable) Correct Answers
Record liability
Contingent liability (remote) Correct Answers Do nothing
Complete Solutions
Accounting bucket Correct Answers Determined allowance in
case someone does not pay the company
Accounts and notes receivable Correct Answers Reported as
assets on the balance sheet
Accounts receivable Correct Answers Buy now, pay later
Accounts receivable turnover Correct Answers Net credit sales
÷ average accounts receivable
Allowance for doubtful accounts Correct Answers Used to
separate actual A/R balance from net realizable value
Allowance percent of receivables Correct Answers Balance
sheet approach
Allowance percent of revenue Correct Answers Income
statement approach
Amortization Correct Answers Repayment of principal in
regular payments
Amortization/impairment Correct Answers Applied to
intangibles (copyrights, patents, franchises)
AR is on Correct Answers Balance sheet
, Bad debt Correct Answers Someone is not going to pay
Bond certificates Correct Answers Issued when borrowing
from public
Bond discount Correct Answers Selling price < face value
Bond premium Correct Answers Selling price > face value
Bondholder Correct Answers Buyer/lender
Book value Correct Answers Carrying value of asset
Capitalized costs Correct Answers Costs that improve or
extend asset life
Collateral Correct Answers Assets pledged as security for
payment
Collateral definition Correct Answers Assets pledged as
security
Contingent liability (possible or probable but not estimable)
Correct Answers Disclose in notes
Contingent liability (probable & estimable) Correct Answers
Record liability
Contingent liability (remote) Correct Answers Do nothing
