financial accounting exam 3 questions with complete
solutions
accounts receivable Correct Answers amounts due from
customers for credit sales
accounts receivable ledger Correct Answers a supplementary
record to maintain an account for each customer and records
journal entries that affect accounts receivable
accounts receivable method Correct Answers uses balance
sheet relations to estimate bad debts
accounts receivable turnover Correct Answers net sales/
average accounts receivable, measure of both quality and
liquidity of accounts receivable
accumulated depletion Correct Answers conta asset reported on
the balance sheet
accumulated depreciation Correct Answers contra asset
account and is reported on the balance sheet
aging of receivables Correct Answers uses both past and
current receivables info to estimate allowance amount
allowance for doubtful accounts Correct Answers a contra-
asset that equals total uncollectible accounts
, allowance method Correct Answers accounting for bad debts
matches the estimated loss from uncollectible accounts
receivables against the sales they helped produce
amortization Correct Answers cost is systematically allocated
to expense over its estimated useful life, used for intangible
assets
bad debts Correct Answers accounts of customers who do not
pay what they have promised to pay
betterment Correct Answers expenditures that make a plant
asset more efficient or productive
book value Correct Answers calculated by taking an assets
acquisition costs less its accumulated depreciation
calculate depletion expense in a period Correct Answers
depletion per unit X units extracted and sold in the period
capital expenditure Correct Answers additional costs of plant
assets that provide benefits
cost of a plant asset Correct Answers purchase price and cost to
prepare for use
cost principle Correct Answers plant assets should be recorded
at cost, which includes all the normal and reasonable
expenditures necessary to get the asset in place and ready for its
intended use
solutions
accounts receivable Correct Answers amounts due from
customers for credit sales
accounts receivable ledger Correct Answers a supplementary
record to maintain an account for each customer and records
journal entries that affect accounts receivable
accounts receivable method Correct Answers uses balance
sheet relations to estimate bad debts
accounts receivable turnover Correct Answers net sales/
average accounts receivable, measure of both quality and
liquidity of accounts receivable
accumulated depletion Correct Answers conta asset reported on
the balance sheet
accumulated depreciation Correct Answers contra asset
account and is reported on the balance sheet
aging of receivables Correct Answers uses both past and
current receivables info to estimate allowance amount
allowance for doubtful accounts Correct Answers a contra-
asset that equals total uncollectible accounts
, allowance method Correct Answers accounting for bad debts
matches the estimated loss from uncollectible accounts
receivables against the sales they helped produce
amortization Correct Answers cost is systematically allocated
to expense over its estimated useful life, used for intangible
assets
bad debts Correct Answers accounts of customers who do not
pay what they have promised to pay
betterment Correct Answers expenditures that make a plant
asset more efficient or productive
book value Correct Answers calculated by taking an assets
acquisition costs less its accumulated depreciation
calculate depletion expense in a period Correct Answers
depletion per unit X units extracted and sold in the period
capital expenditure Correct Answers additional costs of plant
assets that provide benefits
cost of a plant asset Correct Answers purchase price and cost to
prepare for use
cost principle Correct Answers plant assets should be recorded
at cost, which includes all the normal and reasonable
expenditures necessary to get the asset in place and ready for its
intended use
