Chapter 7 MultipleChoice Questions_chapter7同步原理

Chapter 7 MultipleChoice Questions由刀豆文库小编整理，希望给你工作、学习、生活带来方便，猜你可能喜欢“chapter7同步原理”。

Chapter 7$240)÷ 365] d.$800 ÷ [($1,700$240)÷ 365]

d.$600 ÷ [($1,500-$240)÷ 365]

D is correct.Section “aeing cash adequacy” – The ratio of cash to daily cash expenses is calculated by dividing cash and cash equivalents by average daily cash expenses.60.Receivables are claims that are expected to be met in

a.cash

b.inventory

c.liabilities

d.shares

A is correct.Section “Receivables” – receivables are claims that are expected to be met in cash.61.Accounts receivable includes

a.non-trade receivables

b.amounts owed by customers on account

c.interest receivable

d.loans to company officers

B is correct.Section “Receivables” – Accounts receivable includes amounts owed by customers on account.62.Accounts receivable are reported on the balance sheet as a/an

a.liability

b.equity

c.aet

d.revenue

C is correct.Section “Receivables” – Accounts receivable are reported on the balance sheet as an aet.63.Under the direct write-off method, when a particular account is considered to be uncollectible, the lo is charged to

a.revenue

b.accounts receivable

c.allowance for doubtful debts

d.bad debts expense

D is correct.Section “Receivables” – Under the direct write-off method, when a particular account is considered to be uncollectible, the lo is charged to bad debts expense.64.The method being used to determine the amount of the allowance for doubtful debts that relies on a schedule in which customers balances are claified by the length of time they have been unpaid, is known as the

a.direct write-off method

b.net realisable method

c.aged accounts receivable method

d.conservatism method

C is correct.Section “Receivables” – Ageing the accounts receivable allows the allowance for doubtful debts to be determined.65.Receivables that mature within the entity’s operating cycle are claified in the balance sheet as

a.equity

b.liabilities

c.non-current aets

d.current aets

D is correct.Section “Receivables” – Receivables that mature within the entity’s operating cycle are claified in the balance sheet as current aets.66.The recoverable amount of trade receivables is shown in the

a.income statement

b.balance sheet

c.statement of changes in equity

d.cash flow statement

B is correct.Section “Receivables” – The recoverable amount of receivables is shown in the balance sheet.67.A is correct.Section “Managing receivables” – The management of accounts receivable firstly involves the determination of whom to extend credit to.68.The credit risk ratio is calculated by dividing the allowance for doubtful debts by

a.total sales

b.total aets

c.accounts receivable

d.365 days

C is correct.Section “Managing receivables” – The credit risk ratio is calculated by dividing the allowance for doubtful debts by accounts receivable.69.Which of the following will not help minimise potential loes resulting from credit customers

a.Letters of credit/bank guarantees

b.Cash on delivery

c.bank/supplier references

d.Extended payment period

D is correct.Section “Cash” – An extended payment period will not minimise potential loes from credit customers.70.The receivables turnover ratio is used to ae the liquidity of the: a.customer b.receivables c.busine d.aets

B is correct.Section “Managing receivables” – The receivables turnover ratio is used to ae the liquidity of the receivables.Managing accounts receivable involves five steps of which the following occurs first a.determine to whom to extend credit b.accelerate cash receipts from receivables c.establish a payment period d.monitor the collections

71.A factor is used to a.borrow money b.apply for credit c.accelerate cash receipts d.increase sales

C is correct.Section “Managing receivables” – a factor is one way of accelerating cash receipts.