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Accounting
Q:
which receivables accounting and reporting issue is not essentially the same for ifrs and gaap? a.the use of allowance accounts and the allowance method b.how to record discounts c.how to record factoring d.all of the above are essentially the same for ifrs and gaap
Q:
The total on the "Accounts Payable Creditor Balances" report at January 31, the end of the first month of operations, agrees with the total of the Accounts Payable Dr. column in the cash payments journal for the same period. a. True b. False
Q:
ifrs requires loans and receivables to be recorded at a.amortized cost b.amortized cost, adjusted for allowances for doubtful accounts c.unamortized cost d.unamortized cost, adjusted for allowances for doubtful accounts
Q:
Using the Internet to perform business transactions is called e-commerce. a. True b. False
Q:
which receivables accounting and reporting issue is essentially the same for ifrs and gaap? a.the use of allowance accounts and the allowance method b.how to record discounts c.how to record factoring d.all of the above are essentially the same for ifrs and gaap
Q:
Designing a system to meet user needs is the final phase in the creation or revision of an accounting system. a. True b. False
Q:
ifrs sometimes refers to allowances as a.revenues b.discounts c.provisions d.reserves
Q:
The total of the accounts receivable subsidiary accounts and the balance of the accounts receivable control account should equal each other at the end of the period. a. True b. False
Q:
ifrs a.implies that receivables with different characteristics should be reported separately b.requires that receivables with different characteristics should be reported separately c.implies that receivables with different characteristics should be reported as one unsegregated amount d.requires that receivables with different characteristics should be reported as one unsegregated amount
Q:
The receipt of cash for the monthly rental of unused office space would be recorded in the revenue journal. a. True b. False
Q:
which board(s) has(have) worked to implement fair value measurement for financial instruments? a.fasb, but not iasb b.iasb, but not fasb c.both fasb and iasb d.neither fasb nor iasb
Q:
A control account is used to record the details of the individual subsidiary accounts. a. True b. False
Q:
Which requires a two-tiered approach to test whether the value of loans and receivables are impaired?
Q:
The Post. Ref. column of the revenue journal will reference the account number of the customer. a. True b. False
Q:
Which is part of IFRS accounting for financial instruments?
Q:
The columns included in special journals are standardized for all businesses. a. True b. False
Q:
which board(s) has(have) faced bitter opposition when working to implement fair value measurement for financial instruments? a.fasb, but not iasb b.iasb, but not fasb c.both fasb and iasb d.neither fasb nor iasb
Q:
The accounts receivable subsidiary ledger is an example of a special journal. a. True b. False
Q:
The principal ledger that contains all the balance sheet and income statement accounts is the general ledger. a. True b. False
Q:
which permits partial derecognition of receivables?
Q:
What criteria are used to determine how to record a factoring transaction?
Q:
When a large number of individual accounts with a common characteristic are grouped together in a separate ledger, the summarizing account in the general ledger is called a control account. a. True b. False
Q:
Compute the maturity value as indicated for each of the following notes receivable.1. A $7,000, 6%, 3-month note dated July 20.Maturity value $____________.2. A $16,000, 9%, 150-day note dated August 5.Maturity value $____________.
Q:
Accounting systems evolve through a three-step process: analysis, design, and feedback. a. True b. False
Q:
Strickman Company uses the allowance method for estimating uncollectible accounts. Prepare journal entries to record the following transactions:
Q:
benson products uses the receivable approach in estimating uncollectible accounts. on december 31, 2012, the balance in accounts receivable was $650,000. an aging analysis of the accounts receivable indicated that $25,500 in accounts are expected to be uncollectible.
prepare the adjusting entry to record estimated bad debts expense using the percentage of receivables basis under each of the following independent assumptions:
(a)allowance for doubtful accounts has a credit balance of $3,000 before adjustment.
(b)allowance for doubtful accounts has a debit balance of $830 before adjustment.
Q:
Most accounting systems evolve as the business grows and requires changes in its methods for collecting, accumulating, and reporting information. a. True b. False
Q:
The ledger of the Ramirez Company at the end of the current year shows Accounts Receivable of $150,000.InstructionsIf Allowance for Doubtful Accounts has a credit balance of $3,000 in the trial balance and bad debts are expected to be 8% of accounts receivable, journalize the adjusting entry for end of the period. (Show all calculations.)If Allowance for Doubtful Accounts has a debit balance of $3,000 in the trial balance and bad debts are expected to be 8% of accounts receivable, journalize the adjusting entry for end of the period. (Show all calculations.)
Q:
When specialized journals are used, the general journal is not necessary. a. True b. False
Q:
Services provided for cash are recorded in the revenue journal. a. True b. False
Q:
Assuming that the allowance method is being used, prepare general journal entries without explanations to record the following transactions.January 1 Sold merchandise to Mary Baden for $500 on account.February 1 Received $200 from Baden.July 1 Wrote off Baden’s account as uncollectible.September 1 Unexpectedly received payment in full from Baden.
Q:
E-commerce provides additional business opportunities but at the cost of reduced speed and efficiency. a. True b. False
Q:
determine the interest on the following notes:(a)$4,000 at 6% for 90 days.(b)$800 at 9% for 5 months.(c)$3,000 at 8% for 60 days(d)$1,600 at 7% for 6 months
Q:
Merry Co. sells Christmas angels. Merry determines that at the end of December, they have the following aging schedule of Accounts Receivable:Compute the net receivables based on the above information at the end of December (There was no beginning balance in the Allowance for Doubtful Accounts).
Q:
The Other Accounts column in the cash payments journal is used for recording debits to any account for which there is no specialized debit column. a. True b. False
Q:
The customers subsidiary ledger is controlled by the general ledger account entitled Accounts Payable. a. True b. False
Q:
Trent Distributors has the following transactions related to notes receivable during the last two months of the year.InstructionsJournalize the transactions for Trent Distributors.
Q:
An accounting system design consists of internal controls and information processing methods. a. True b. False
Q:
The following data exists for Mather Company.Calculate the receivable turnover ratio and the average collection period for accounts receivable in days for 2012.
Q:
Processing methods are the means by which the system collects, summarizes, and reports accounting information. a. True b. False
Q:
Donaldson Company has the following accounts in its general ledger at July 31: Accounts Receivable $40,000 and Allowance for Doubtful Accounts $2,500. During August, the following transactions occurred.InstructionsJournalize the transactions.
Q:
The term B2C refers to transactions conducted between two companies. a. True b. False
Q:
On January 10 Donna Stark uses her Baver Co. credit card to purchase merchandise from Baver Co. for $2,100. On February 10, she is billed for the amount due of $2,100. On February 12 Stark pays $1,600 on the balance due. On March 10 Stark is billed for the amount due, including interest at 1% per month on the unpaid balance as of February 12.InstructionsPrepare the entries on Baver Co.'s books related to the transactions that occurred on January 10, February 12, and March 10.
Q:
Specialized journals are books of original entry. a. True b. False
Q:
At the beginning of the current period, Emler Corp. had balances in Accounts Receivable of $200,000 and in Allowance for Doubtful Accounts of $9,000 (credit). During the period, it had net credit sales of $650,000 and collections of $570,000. It wrote off as uncollectible accounts receivable of $5,000. However, a $3,000 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $22,000 at the end of the period.Instructions(a) Prepare the entries to record sales and collections during the period.(b) Prepare the entry to record the write-off of uncollectible accounts during the period.(c) Prepare the entries to record the recovery of the uncollectible account during the period.(d) Prepare the entry to record bad debts expense for the period.(e) Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts.(f) Calculate the net realizable value of the receivables at the end of the period.
Q:
Generally, subsidiary ledgers are used for general ledger accounts that consist of a large number of individual items. a. True b. False
Q:
the following are sales of the holiday store during february. the store sells seasonal holiday items.determine the balance in accounts receivable at 2/28.
Q:
In a computerized accounting system, all postings happen automatically at the end of the month. a. True b. False
Q:
Finney had the following transactions during March 2010. 1. Finney sold and delivered $12,000 of merchandise to LJ Enterprises, terms 2/10, n30. 2. LJ Enterprises also ordered an additional $5,000 worth of goods on the last day of the month.3. Finney lent $1,000 to its company president who promised to repay the loan on the 15th day of the next month. 4. Finney sold old storage sheds to Alt Traders on 3/31. Alt Traders gave a $2,500 promissory note to Finney agreeing to pay for the sheds in 3 months.5. Other current assets totaled $50,000.Finney received no cash arising from the above transactions during March. Compute the percentage Accounts Receivable is of the total current assets as of month end.
Q:
Transactions must first be recorded in the general journal before they can be entered in specialized journals. a. True b. False
Q:
presented below are various receivable transactions entered into by renner tool company. indicate whether the receivables are reported as accounts receivable, notes receivable, or other receivables on the balance sheet. a.advanced $1,000 to a trusted employee. b.accepted a $2,000 promissory note from a customer as payment on account. c.determined that a $10,000 income tax refund is due from the irs. d.sold goods to a customer on account for $5,000. e.recorded $500 accrued interest on a note receivable due next year. f.loaned a company officer $4,000.
Q:
Purchases journals will have an Other Accounts Cr. column. a. True b. False
Q:
the retailer considers visa and mastercard sales as a.cash sales b.promissory sales c.credit sales d.contingent sales
Q:
The purchase of supplies for cash would be recorded in the purchases journal. a. True b. False
Q:
schofield retailers accepted $50,000 of silver bank mastercard credit card charges for merchandise sold on august 1. silver bank charges 4% for its credit card use. the entry to record this transaction by schofield retailers will include a credit to sales of $50,000 and a debit(s) to a.cash for $48,000 and service charge expense for $2,000 b.accounts receivable for $48,000 and service charge expense for $2,000 c.cash for $50,000 d.accounts receivable for $50,000
Q:
In computerized accounting systems, reports may be generated at any time. a. True b. False
Q:
on april 5 donnas boutique accepted a visa card for a $500 purchase. visa charges a 2% service fee. the entry to record this transaction would include a a.credit to cash of $490 b.debit to cash of $500 c.debit to service charge expense of $10 d.credit to service charge expense of $10
Q:
Adjusting journal entries are recorded in a special journal. a. True b. False
Q:
when customers make purchases with a national credit card, the retailer a.is responsible for maintaining customer accounts b.is not involved in the collection process c.absorbs any losses from uncollectible accounts d.receives cash equal to the full price of the merchandise sold from the credit card company
Q:
The presence of a subsidiary ledger requires the presence of a summarizing control account in the general ledger. a. True b. False
Q:
gipson furniture factors $400,000 of receivables to kwik factors, inc. kwik factors assesses a 3% service charge on the amount of receivables sold. gipson furniture factors its receivables regularly with kwik factors. what journal entry does gipson make when factoring these receivables?
Q:
Businesses can only be segmented by type of customer. a. True b. False
Q:
a company regularly sells its receivables to a factor who assesses a 2% service charge on the amount of receivables purchased. which of the following statements is true for the seller of the receivables? a.the loss section of the income statement will increase each time receivables are sold b.the credit to accounts receivable is less than the debit to cash when the accounts are sold c.selling expenses will increase each time accounts are sold d.the other expense section of the income statement will increase each time accounts are sold
Q:
The use of subsidiary ledgers is limited to accounts payable and accounts receivable. a. True b. False
Q:
receivables might be sold to a.lengthen the cash-to-cash operating cycle b.take advantage of deep discounts on the cash realizable value of receivables c.generate cash quickly d.finance companies at an amount greater than cash realizable value
Q:
Even when special journals are used, purchases of store equipment on account are recorded in the general journal. a. True b. False
Q:
a captive finance company refers to a.a finance company that is owned by individuals who borrow money from the company b.finance companies that won't allow early repayment of loans c.a company that is wholly owned by another company and provides financing to purchasers of its owner company's goods d.any company that issues a major credit card
Q:
Systems analysis is the final phase in the creation or revision of an accounting system. a. True b. False
Q:
if a company sells its accounts receivables to a factor a.the seller pays a commission to the factor b.the factor pays a commission to the seller c.there is a gain on the sale of the receivables d.the seller defers recognition of sales revenue until the account is collected
Q:
Even when special journals are used, a personal withdrawal of cash is recorded in the general journal. a. True b. False
Q:
the sale or transfer of accounts receivable in order to raise funds is called a.pledging b.factoring c.leasing d.collateralizing
Q:
if a retailer regularly sells its receivables to a factor, the service charge of the factor should be classified as a(n) a.selling expense b.interest expense c.other expense d.contra asset
Q:
Two transactions were posted to the following customer account.NAME: Boogie Board Water WearADDRESS: 2340 Xtreme SurfDateItemPost. Ref.DebitCreditBalanceJuly 1 Balance 805 6 Invoice No. 406R42645 1,45024 Invoice No. 456CR56 710740 Describe each transaction and the source of each posting.
Q:
Discuss the process of posting from a revenue journal to the subsidiary ledger and to the general ledger.
Q:
the sale of receivables by a business a.indicates that the business is in financial difficulty b.is generally the major revenue item on its income statement c.is an indication that the business is owned by a captive finance company d.can be a quick way to generate cash for operating needs
Q:
Down-Under, an aquatic supply store, makes the following five payments during August. Journalize them in the cash payments journal as appropriate.(a) On August 2, Down-Under paid Pondmaster, Inc. with Check No. 6420 for 6 pumps at $435.00 each. The pumps had been purchased in July on account.(b) On August 10, Down-Under purchased $785.00 of office supplies from Business Systems with Check No. 6421.(c) On August 15, Down-Under paid Aqua Magic $215.00 on account with Check No. 6422.(d) On August 27, Down-Under paid an invoice for merchandise received earlier from Spindrifter, Inc. for 8 drains at $73.50 each with Check No. 6423.(e) On August 31, Down-Under purchased $65.00 of koi clay from The Natural Wonder Company by writing Check No. 6424. (Record in Pond Supplies Expense.) Cash Payments Journal Page 17 DateCk.No.Account DebitedPost.Ref.OtherAccountsDr.AccountsPayable Dr.CashCr.
Q:
a company sells $800,000 of accounts receivable to a factor for cash less a 2% service charge. the entry to record the sale should not include a a.debit to interest expense for $16,000 b.debit to cash for $784,000 c.debit to service charge expense for $16,000 d.credit to accounts receivable for $800,000
Q:
Harris, Inc., incurred the following transactions during the month of February. Record the appropriate ones in the cash payments journal. Include posting references. If a transaction should not be recorded in the cash payments journal, indicate in which journal it should be entered. (a) On February 3, the company purchased $650 worth of supplies on account. The supplies account number is 15. (b) On February 5, Harris, Inc. made a payment on account to Sanders Industries in the amount of $1,215 (Check No. 2214). (c) On February 14, Harris, Inc. bought a one-year insurance policy for $1,500. The prepaid insurance account number is 14 (Check No. 2215). (d) On February 22, Harris, Inc. paid monthly rent of $2,000. The rent expense account number is 63 (Check No. 2216). (e) On February 26, Harris, Inc. purchased equipment, paying cash of $7,000 (Check No. 2217). The equipment account number is 18. DateCk.No.Account DebitedPost.Ref.Other AccountsDr.Accounts Payable Dr. CashCr.
Q:
xyz company accepted a national credit card for a $5,000 purchase. the cost of the goods sold is $4,000. the credit card company charges a 3% fee. what is the impact of this transaction on net operating income? a.increase by $970 b.increase by $1,000 c.increase by $850 d.increase by $4,850
Q:
Sunrise Coffee Shop, in an effort to streamline its accounting system, has decided to utilize a cash receipts journal. Journalize the following selected summary transactions for March, total the columns, and include the posting references that would be inserted when posting the entries/totals to the ledger accounts. A partial chart of accounts follows. After recording the transactions, indicate if there are any additional columns you would add to this journalCash Receipts JournalDateAccountCreditedPost.Ref.OtherAccountsCr.BeverageRevenueCr.FoodRevenueCr.CashCr. Mar. 1 Received cash for beverage sales, $375.1 Received cash for food sales, $250. 1 Received cash for customer sales of Sunrise’s signature coffee mugs, $130.7 Received cash for beverage sales, $480.7 Received cash for food sales, $325.7 Received cash for customer sales of Sunrise’s signature coffee mugs, $115.10 Received cash on account from Central.com, $900. Chart of Accounts (Partial)10 Cash41 Beverage Revenue12 Accounts Receivable42 Food Revenue15 Retail Items43 Retail Revenue