Intuit Bookkeeping: Ch. 2 Accounting for Assets and Sales
Transactions || All Correct 100%.
Assets correct answers Resources that a business owns or controls with the expectation that they
will provide future benefits. Has a Normal DEBIT Balance
Current Assets correct answers Liqu
What are examples of current assets? correct answers Account Receivables & Inventory
Fixed Assets (PPE) correct answers Property, Land, & Equipment. Long-term assets that are
relatively permanent. They are tangible & have useful life.
Other Assets correct answers Intangible assets that are intellectual property, such as patents,
copyrights, and goodwill
Balance Sheet correct answers A financial statement that reports assets, liabilities, and owner's
equity on a specific date.
What financial statements do Assets appear on? correct answers Balance Sheet & Statement of
Cash Flow
Explain accounting for Sales correct answers Record REVENUE when income is earned with a
normal CREDIT balance
Accounts Receivable correct answers Amounts to be received in the future due to the sale of
goods or services
Cash Receipts correct answers Money that is exchanged or paid at time of sale
Notes Receivable correct answers A written promise that a customer will pay a fixed amount of
principal plus interest by a certain date in the future.
Uncollectible Accounts correct answers Accounts receivable that cannot be collected; Bad Debt
or Allowance for Doubtful Accounts
Direct Write-Off Method correct answers Recording bad debt expense at the time we know the
account is uncollectible. For TAX purposes only
Allowance Method for Uncollectible Accounts correct answers 1. Companies estimate
uncollectible accounts receivable.
2. Debit Bad Debts Expense and credit Allowance for Doubtful Accounts (a contra-asset
account).
3. Companies debit Allowance for Doubtful Accounts and credit Accounts Receivable at the
time the specific account is written off as uncollectible.
Transactions || All Correct 100%.
Assets correct answers Resources that a business owns or controls with the expectation that they
will provide future benefits. Has a Normal DEBIT Balance
Current Assets correct answers Liqu
What are examples of current assets? correct answers Account Receivables & Inventory
Fixed Assets (PPE) correct answers Property, Land, & Equipment. Long-term assets that are
relatively permanent. They are tangible & have useful life.
Other Assets correct answers Intangible assets that are intellectual property, such as patents,
copyrights, and goodwill
Balance Sheet correct answers A financial statement that reports assets, liabilities, and owner's
equity on a specific date.
What financial statements do Assets appear on? correct answers Balance Sheet & Statement of
Cash Flow
Explain accounting for Sales correct answers Record REVENUE when income is earned with a
normal CREDIT balance
Accounts Receivable correct answers Amounts to be received in the future due to the sale of
goods or services
Cash Receipts correct answers Money that is exchanged or paid at time of sale
Notes Receivable correct answers A written promise that a customer will pay a fixed amount of
principal plus interest by a certain date in the future.
Uncollectible Accounts correct answers Accounts receivable that cannot be collected; Bad Debt
or Allowance for Doubtful Accounts
Direct Write-Off Method correct answers Recording bad debt expense at the time we know the
account is uncollectible. For TAX purposes only
Allowance Method for Uncollectible Accounts correct answers 1. Companies estimate
uncollectible accounts receivable.
2. Debit Bad Debts Expense and credit Allowance for Doubtful Accounts (a contra-asset
account).
3. Companies debit Allowance for Doubtful Accounts and credit Accounts Receivable at the
time the specific account is written off as uncollectible.
