Assignment
1)What type of receivable is evidenced by a formal instrument and normally requires the payment of interest
An account receivable
Past-due accounts receivables
A trade receivable
A note receivable
2) When is a receivable recorded by a service organization?
When the related expenses are incurred
When the bill is sent to the customer
When the customer pays
When service is provided on account
3) At what value are accounts receivable reported on the balance sheet?
Present value
Cash (net) realizable value
Fair market value
Maturity value
4) Short-term notes receivable are reported at their cash (net) realizable value.
True
False
5) Which one of these statements about promissory notes is incorrect?
The party making the promise to pay is called the maker.
The party to whom payment is to be made is called the payee.
A promissory note is not a negotiable instrument.
A promissory note is more liquid than an account receivable.
6) Which of the following should be classified as an "other" receivable?
Trade receivables
Interest receivable
Accounts receivable
Notes receivable
7) What type of receivables result from sales transactions?
Long-term receivables
Trade receivables
Non-trade receivables
Other receivables
8) Which one of the following is not a method used by companies to accelerate cash receipts?
Accepting national credit cards for customer purchases
Writing off receivables
Selling receivables to a factor
Offering discounts for early payment
9) Which of the following accounts is debited when a company factors its accounts receivable?
Interest Expense
Loss on Sale of Accounts Receivable
Accounts Receivable
Service Charge Expense
10) Which of the following is the value at which loans and receivables should be reported under IFRS?
Net of bad debt expense
Cash realizable value
Amortized cost
Maturity value