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Cash - receivables
Accounting (Divine Word College of Legazpi)
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CHAPTER 7
CASH AND RECEIVABLES
IFRS questions are available at the end of this chapter.
TRUE-FALSE—Conceptual
Answer No. Description
T 1. Items considered cash.
F 2. Items considered cash.
F 3. Items considered cash.
F 4. Cash equivalents definition.
F 5. Bank overdrafts.
T 6. Cash equivalents.
F 7. Classification of receivables.
F 8. Items considered trade receivables.
T 9. Trade discount uses.
T 10. Sales discounts.
T 11. Valuation of receivables.
F 12. Percentage-of-receivables approach.
F 13. Percentage-of-sales method.
T 14. Reporting notes receivable.
F 15. Stated interest rate vs. effective rate.
F 16. Classification of notes receivable.
T 17. Recourse liability.
F 18. Buying receivables with recourse.
T 19. Selling receivables with recourse.
F 20. Computing receivables turnover.
MULTIPLE CHOICE—Conceptual
Answer No. Description
d 21. Identification of cash items.
b 22. Identification of cash items.
d 23. Classification of travel advance.
P
d 24. Items included as cash.
b 25. Identification of cash items.
a 26. Classification of post-dated checks.
b 27. Classification of postage stamps.
d 28. Compensating balance definition.
b 29. Classification of cash restricted for plant expansion.
S
d 30. Cash equivalent definition.
d 31. Classification of bank overdraft.
d 32. Classification of compensating balances.
d 33. Definition of trade receivables.
d 34. Identification of trade receivables.
S
c 35. Presentation of nontrade receivables.
S
d 36. Cash discount definition.
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To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com
7-2 Test Bank for Intermediate Accounting, Thirteenth Edition
MULTIPLE CHOICE—Conceptual (cont.)
Answer No. Description
P
d 37. Trade discount uses.
a 38. Classification of sales discounts.
d 39. Reasons for trade discounts.
c 40. Accounting for cash discounts and trade discounts.
a 41. Theoretically correct approach for cash discounts.
c 42. Accounts receivable valuation problems.
d 43. Reason allowance method is preferable.
a 44. Allowance method concept.
b 45. Accounting for bad debts and earnings management.
c 46. Recording bad debt expense.
a 47. Journal entry for writing off an account.
d 48. Journal entry for collection of an account previously written off.
c 49. Valuation of short-term receivables.
d 50. Bad debt provision and the matching concept.
a 51. Bad debts as a percentage of sales.
b 52. Bad debts as a percentage of sales.
a 53. Bad debts as a percentage of receivables.
d 54. Financial statement effect of a note recorded incorrectly.
b 55. Imputed interest description.
c 56. Reason a company sells receivables.
d 57. Transfer of receivables as a sale.
a 58. Definition of selling receivables with recourse.
c 59. Factoring accounts receivable without recourse.
S
c 60. Classification of accounts and notes receivable.
S
a 61. Transfer of receivables with recourse.
P
a 62. Accounts receivable turnover ratio.
d 63. Accounts receivable turnover ratio.
c 64. Items included in accounts receivable on balance sheet.
a 65. Days to collect accounts receivable calculation.
d 66. Reason for accounts receivable turnover increase.
b *67. Balance per bank reconciling item.
c *68. Entry to replenish Petty Cash.
c *69. Purpose of Cash Over & Short account.
b *70. Classification of bank service charges.
c *71. Treatment of bank credits on bank reconciliation.
PTheseS questions also appear in the Problem-Solving Survival
Guide. These questions also appear in the Study Guide.
* This topic is dealt with in an Appendix to the chapter.
Downloaded by kevin wacira ()
, lOMoARcPSD|25973474
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com
Cash and Receivables 7-3
MULTIPLE CHOICE—Computational
Answer No. Description
b 72 Calculate cash balance.
d 73. Calculate effective interest on loan with required compensatory balance.
b 74. Reporting cash.
c 75. Cash and cash equivalents.
b 76. Reporting cash.
c 77. Cash and cash equivalents.
c 78. Determine effective annual interest rate of sales discount.
b 79. Calculate sales revenue using net method.
c 80. Entry for credit sale using gross method.
a 81. Entry for credit sale using net method.
c 82. Calculate ending allowance for doubtful accounts balance.
d 83. Calculate bad debt expense.
c 84. Calculate ending allowance for doubtful accounts balance.
b 85. Calculate balance of accounts receivable.
b 86. Calculate net realizable value of accounts receivable.
d 87. Calculate net realizable value of accounts receivable.
c 88. Calculate bad debt expense using aging of receivables.
b 89. Calculate bad debt expense using percent of sales.
a 90. Calculate bad debt expense using percent of receivables.
b 91. Valuation of accounts receivable.
b 92. Calculation of bad debt expense.
d 93. Calculate Allowance for Doubtful Accounts balance.
b 94. Valuation of accounts receivable.
b 95. Calculation of bad debt expense.
d 96. Calculate Allowance for Doubtful Accounts balance.
b 97. Determine appropriate interest rate for a zero-interest-bearing note.
a 98. Calculate present value of a zero-interest-bearing note.
a 99. Calculation of sales revenue.
b 100. Entry for exchange of goods for note receivable.
c 101. Calculate amount of interest.
c 102. Calculate interest revenue on a zero-interest-bearing note.
d 103. Calculate note payable amount.
a 104. Calculate gain (loss) on transfer of receivables.
b 105. Calculate gain (loss) on transfer of receivables.
d 106. Calculation of gain (loss) on transfer of receivables.
c 107. Calculate proceeds from transfer of receivables with recourse.
a 108. Record assignment of accounts receivables.
c 109. Calculate cash proceeds from transfer of receivables.
c 110. Entry to record collection of assigned receivables.
b 111. Factoring receivables without recourse.
b 112. Factoring receivables with recourse.
c 113. Calculate loss on sale of receivables.
c 114. Calculate loss on sale of receivables.
c 115. Calculate accounts receivable turnover.
c 116. Calculate accounts receivable turnover.
Downloaded by kevin wacira ()
Cash - receivables
Accounting (Divine Word College of Legazpi)
Studocu is not sponsored or endorsed by any college or university
Downloaded by kevin wacira ()
, lOMoARcPSD|25973474
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com
CHAPTER 7
CASH AND RECEIVABLES
IFRS questions are available at the end of this chapter.
TRUE-FALSE—Conceptual
Answer No. Description
T 1. Items considered cash.
F 2. Items considered cash.
F 3. Items considered cash.
F 4. Cash equivalents definition.
F 5. Bank overdrafts.
T 6. Cash equivalents.
F 7. Classification of receivables.
F 8. Items considered trade receivables.
T 9. Trade discount uses.
T 10. Sales discounts.
T 11. Valuation of receivables.
F 12. Percentage-of-receivables approach.
F 13. Percentage-of-sales method.
T 14. Reporting notes receivable.
F 15. Stated interest rate vs. effective rate.
F 16. Classification of notes receivable.
T 17. Recourse liability.
F 18. Buying receivables with recourse.
T 19. Selling receivables with recourse.
F 20. Computing receivables turnover.
MULTIPLE CHOICE—Conceptual
Answer No. Description
d 21. Identification of cash items.
b 22. Identification of cash items.
d 23. Classification of travel advance.
P
d 24. Items included as cash.
b 25. Identification of cash items.
a 26. Classification of post-dated checks.
b 27. Classification of postage stamps.
d 28. Compensating balance definition.
b 29. Classification of cash restricted for plant expansion.
S
d 30. Cash equivalent definition.
d 31. Classification of bank overdraft.
d 32. Classification of compensating balances.
d 33. Definition of trade receivables.
d 34. Identification of trade receivables.
S
c 35. Presentation of nontrade receivables.
S
d 36. Cash discount definition.
Downloaded by kevin wacira ()
, lOMoARcPSD|25973474
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com
7-2 Test Bank for Intermediate Accounting, Thirteenth Edition
MULTIPLE CHOICE—Conceptual (cont.)
Answer No. Description
P
d 37. Trade discount uses.
a 38. Classification of sales discounts.
d 39. Reasons for trade discounts.
c 40. Accounting for cash discounts and trade discounts.
a 41. Theoretically correct approach for cash discounts.
c 42. Accounts receivable valuation problems.
d 43. Reason allowance method is preferable.
a 44. Allowance method concept.
b 45. Accounting for bad debts and earnings management.
c 46. Recording bad debt expense.
a 47. Journal entry for writing off an account.
d 48. Journal entry for collection of an account previously written off.
c 49. Valuation of short-term receivables.
d 50. Bad debt provision and the matching concept.
a 51. Bad debts as a percentage of sales.
b 52. Bad debts as a percentage of sales.
a 53. Bad debts as a percentage of receivables.
d 54. Financial statement effect of a note recorded incorrectly.
b 55. Imputed interest description.
c 56. Reason a company sells receivables.
d 57. Transfer of receivables as a sale.
a 58. Definition of selling receivables with recourse.
c 59. Factoring accounts receivable without recourse.
S
c 60. Classification of accounts and notes receivable.
S
a 61. Transfer of receivables with recourse.
P
a 62. Accounts receivable turnover ratio.
d 63. Accounts receivable turnover ratio.
c 64. Items included in accounts receivable on balance sheet.
a 65. Days to collect accounts receivable calculation.
d 66. Reason for accounts receivable turnover increase.
b *67. Balance per bank reconciling item.
c *68. Entry to replenish Petty Cash.
c *69. Purpose of Cash Over & Short account.
b *70. Classification of bank service charges.
c *71. Treatment of bank credits on bank reconciliation.
PTheseS questions also appear in the Problem-Solving Survival
Guide. These questions also appear in the Study Guide.
* This topic is dealt with in an Appendix to the chapter.
Downloaded by kevin wacira ()
, lOMoARcPSD|25973474
To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com
Cash and Receivables 7-3
MULTIPLE CHOICE—Computational
Answer No. Description
b 72 Calculate cash balance.
d 73. Calculate effective interest on loan with required compensatory balance.
b 74. Reporting cash.
c 75. Cash and cash equivalents.
b 76. Reporting cash.
c 77. Cash and cash equivalents.
c 78. Determine effective annual interest rate of sales discount.
b 79. Calculate sales revenue using net method.
c 80. Entry for credit sale using gross method.
a 81. Entry for credit sale using net method.
c 82. Calculate ending allowance for doubtful accounts balance.
d 83. Calculate bad debt expense.
c 84. Calculate ending allowance for doubtful accounts balance.
b 85. Calculate balance of accounts receivable.
b 86. Calculate net realizable value of accounts receivable.
d 87. Calculate net realizable value of accounts receivable.
c 88. Calculate bad debt expense using aging of receivables.
b 89. Calculate bad debt expense using percent of sales.
a 90. Calculate bad debt expense using percent of receivables.
b 91. Valuation of accounts receivable.
b 92. Calculation of bad debt expense.
d 93. Calculate Allowance for Doubtful Accounts balance.
b 94. Valuation of accounts receivable.
b 95. Calculation of bad debt expense.
d 96. Calculate Allowance for Doubtful Accounts balance.
b 97. Determine appropriate interest rate for a zero-interest-bearing note.
a 98. Calculate present value of a zero-interest-bearing note.
a 99. Calculation of sales revenue.
b 100. Entry for exchange of goods for note receivable.
c 101. Calculate amount of interest.
c 102. Calculate interest revenue on a zero-interest-bearing note.
d 103. Calculate note payable amount.
a 104. Calculate gain (loss) on transfer of receivables.
b 105. Calculate gain (loss) on transfer of receivables.
d 106. Calculation of gain (loss) on transfer of receivables.
c 107. Calculate proceeds from transfer of receivables with recourse.
a 108. Record assignment of accounts receivables.
c 109. Calculate cash proceeds from transfer of receivables.
c 110. Entry to record collection of assigned receivables.
b 111. Factoring receivables without recourse.
b 112. Factoring receivables with recourse.
c 113. Calculate loss on sale of receivables.
c 114. Calculate loss on sale of receivables.
c 115. Calculate accounts receivable turnover.
c 116. Calculate accounts receivable turnover.
Downloaded by kevin wacira ()
