Chapter9PracticeMaterials.docVIP

 PAGE \* MERGEFORMAT 452 ? Chapter 9—Receivables Chapter 9—Receivables ?  PAGE \* MERGEFORMAT 451  PAGE \* MERGEFORMAT 434 Chapter 9—Receivables MULTIPLE CHOICE 1. A note receivable due in 18 months is listed on the balance sheet under the caption a.long-term liabilitiesb.fixed assetsc.current assetsd.investments ANS: D DIF: Easy OBJ: 09-01 NAT: AACSB Analytic | AICPA FN-Measurement 2. The receivable that is usually evidenced by a formal instrument of credit is a(n) a.trade receivable.b.note receivable.c.accounts receivable.d.income tax receivable. ANS: B DIF: Easy OBJ: 09-01 NAT: AACSB Analytic | AICPA FN-Measurement 3. Which of the following receivables would not be classified as an other receivable”? a.Advance to an employeeb.Interest receivablec.Refundable income taxd.Notes receivable ANS: D DIF: Easy OBJ: 09-01 NAT: AACSB Analytic | AICPA FN-Measurement 4. Notes or accounts receivables that result from sales transactions are often called a.non-trade receivables.b.trade receivables.c.merchandise receivables.d.sales receivables. ANS: B DIF: Easy OBJ: 09-01 NAT: AACSB Analytic | AICPA FN-Measurement 5. The term receivables includes all a.money claims against other entities.b.merchandise to be collected from individuals or companies.c.cash to be paid to creditors.d.cash to be paid to debtors. ANS: A DIF: Easy OBJ: 09-01 NAT: AACSB Analytic | AICPA FN-Measurement 6. When does an account become uncollectible? a.when the debtor fails to pay an account according to a sales contractb.when the debtor fails to pay a note on the due datec.there is no general rule for when an account becomes uncollectibled.at the end of the fiscal yeare.upon receipt of a certified letter from the debtor ANS: C DIF: Easy OBJ: 09-02 NAT: AACSB Analytic | AICPA FN-Measurement 7. The type of account and normal balance of Allowance for Doubtful Accounts is a.contra asset, creditb.asset, debitc.