ACC 291 Final Exam Guide (New, 2019, 100% Score)
1.The term "receivables" refers to
a) amounts due from individuals or companies.
b) cash to be paid to debtors.
c) merchandise to be collected from individuals or companies.
d) cash to be paid to creditors.
2.Three accounting issues associated with accounts receivable are
a) depreciating, valuing, and collecting.
b) accrual, bad debts, and accelerating collections.
c) depreciating, returns, and valuing.
d) recognizing, valuing, and accelerating collections.
3.When the allowance method is used to account for uncollectible accounts, Bad Debts Expense is debited
when
a) management estimates the amount of uncollectibles.
b) a customer's account becomes past due.
c) a sale is made.
d) an account becomes bad and is written off.
4.Which one of the following is not a principle of sound accounts receivable management?
a) Delay cash receipts from receivables if necessary.
b) Determine a payment period.
c) Monitor collections.
d) Determine to whom to extend credit.
5.The accounts receivable turnover is computed by dividing
a) net credit sales by average receivables.
b) net credit sales by ending receivables.
, c) total sales by ending receivables.
d) total sales by average receivables.
6.The accounts receivable turnover is used to analyze
a) risk.
b) liquidity.
c) long-term solvency.
d) profitability.
7. The following information is provided for Carla Vista Co. and Flint Corporation:
(in $ millions) Carla Vista Co. Flint Corporation
Net income 2017 $130 $435
Net sales 2017 1245 4710
Total assets 12/31/15 1045 2000
Total assets 12/31/16 1225 3120
Total assets 12/31/17 1185 4060
What is Flint's return on assets (rounded) for 2017?
a) 10.5%
b) 10.7%
c) 13.9%
d) 12.1%
8.Which of the following is not properly classified as property, plant, and equipment?
a) Land used in ordinary business operations.
b) Land improvement, such as parking lots and fences.
c) A truck held for resale by an automobile dealership.
d) Building used as a factory.
9.A characteristic of a plant asset is that it is
a) held for sale in the ordinary course of the business.
b) used in the operations of a business.
c) not currently used in the business but held for future use.
d) intangible.
10.A current liability is a debt that can reasonably be expected to be paid
1.The term "receivables" refers to
a) amounts due from individuals or companies.
b) cash to be paid to debtors.
c) merchandise to be collected from individuals or companies.
d) cash to be paid to creditors.
2.Three accounting issues associated with accounts receivable are
a) depreciating, valuing, and collecting.
b) accrual, bad debts, and accelerating collections.
c) depreciating, returns, and valuing.
d) recognizing, valuing, and accelerating collections.
3.When the allowance method is used to account for uncollectible accounts, Bad Debts Expense is debited
when
a) management estimates the amount of uncollectibles.
b) a customer's account becomes past due.
c) a sale is made.
d) an account becomes bad and is written off.
4.Which one of the following is not a principle of sound accounts receivable management?
a) Delay cash receipts from receivables if necessary.
b) Determine a payment period.
c) Monitor collections.
d) Determine to whom to extend credit.
5.The accounts receivable turnover is computed by dividing
a) net credit sales by average receivables.
b) net credit sales by ending receivables.
, c) total sales by ending receivables.
d) total sales by average receivables.
6.The accounts receivable turnover is used to analyze
a) risk.
b) liquidity.
c) long-term solvency.
d) profitability.
7. The following information is provided for Carla Vista Co. and Flint Corporation:
(in $ millions) Carla Vista Co. Flint Corporation
Net income 2017 $130 $435
Net sales 2017 1245 4710
Total assets 12/31/15 1045 2000
Total assets 12/31/16 1225 3120
Total assets 12/31/17 1185 4060
What is Flint's return on assets (rounded) for 2017?
a) 10.5%
b) 10.7%
c) 13.9%
d) 12.1%
8.Which of the following is not properly classified as property, plant, and equipment?
a) Land used in ordinary business operations.
b) Land improvement, such as parking lots and fences.
c) A truck held for resale by an automobile dealership.
d) Building used as a factory.
9.A characteristic of a plant asset is that it is
a) held for sale in the ordinary course of the business.
b) used in the operations of a business.
c) not currently used in the business but held for future use.
d) intangible.
10.A current liability is a debt that can reasonably be expected to be paid
