ACC 311 EXAM -2 QUESTIONS WITH CORRECT ANSWERS.

ACC 311 EXAM #2 QUESTIONS WITH
CORRECT ANSWERS

Revenue Principle - CORRECT ANSWER✔✔-require that revenues be recorded
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when earned |




FOB Shipping Point - CORRECT ANSWER✔✔-title changes hands at shipment,
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revenue recognized at the time of shipment
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FOB Destination - CORRECT ANSWER✔✔-title changes hands on delivery, revenue
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recognized at delivery
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Revenue increases on the ______ side - CORRECT ANSWER✔✔-Credit
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Credit cards sales increases on the ________ side - CORRECT ANSWER✔✔-Debit
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Sales discounts increase on the ______ side - CORRECT ANSWER✔✔-Debit
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Sales Return increases on the ______ side - CORRECT ANSWER✔✔-Debit
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Bad Debts - CORRECT ANSWER✔✔-results from CREDIT customers who can not
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or will not pay the amount they owe, regardless of collection efforts
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, Net Sales = ____ LESS ____ _____ ____ - CORRECT ANSWER✔✔-Sales Revenue
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LESS Sales Returns
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| Sales Discounts |




| Credit Card Discounts | |




Net Sales |




Allowance for Doubtful Accounts - CORRECT ANSWER✔✔-a contra-asset that is
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subtracted from A/R, is not closed at year end | | | | | | | |




for estimating uncollectible amounts, the percentage of credit sales is the ______
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approach - CORRECT ANSWER✔✔-income statement
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for estimating uncollectible amounts, the aging of accounts receivable is the
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______ approach - CORRECT ANSWER✔✔-balance sheet
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When a customer makes a payment after an account has been written off, TWO
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journal entries are required: - CORRECT ANSWER✔✔-1. Reverse the write off
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| Accounts Receivable XXX | |




| Allowance for D.A. XXX | | |




2. Record the cash collection
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| Cash XXX |




| Accounts Receivable XXX | |




Receivables Turnover Ratio - CORRECT ANSWER✔✔-measures how many times
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average receivables are recorded and collected for the year
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