Question 1

The account Allowance for Uncollectible Accounts is reported on the income statement.

Accepted Answer

A) True 
 B)False

Question 2

Select the one term that best fits each definition
-Analyzing accounts receivable according to when they are due.

Accepted Answer

A)   aging of accounts receivable
B)   allowance method
C)   book value
D)   book value of accounts receivable
E)   dishonored noteF)  interest incomeG)  interest rateH)  maker of a noteI)  maturity dateJ)  maturity valueK)  net realizable valueL)  note payableM)  note receivableN)  payeeO)  percent of accounts receivable methodP)  percent of sales methodQ)  principalR)  promissory noteS)  time of a noteT)  writing off an account

Question 3

The accounting concept Neutrality is applied when the process of making accounting estimates is free from bias.

Accepted Answer

A) True 
 B)False

Question 4

Select the one term that best fits each definition
-The original amount of a note, sometimes referred to as the face amount.

Accepted Answer

A)   aging of accounts receivable
B)   allowance method
C)   book value
D)   book value of accounts receivable
E)   dishonored noteF)  interest incomeG)  interest rateH)  maker of a noteI)  maturity dateJ)  maturity valueK)  net realizable valueL)  note payableM)  note receivableN)  payeeO)  percent of accounts receivable methodP)  percent of sales methodQ)  principalR)  promissory noteS)  time of a noteT)  writing off an account

Question 5

Select the one term that best fits each definition
-The difference between the balance of Accounts Receivable and its contra account, Allowance for Uncollectible Accounts.

Accepted Answer

A)   aging of accounts receivable
B)   allowance method
C)   book value
D)   book value of accounts receivable
E)   dishonored noteF)  interest incomeG)  interest rateH)  maker of a noteI)  maturity dateJ)  maturity valueK)  net realizable valueL)  note payableM)  note receivableN)  payeeO)  percent of accounts receivable methodP)  percent of sales methodQ)  principalR)  promissory noteS)  time of a noteT)  writing off an account

Question 6

The book value of accounts receivable must be a reasonable and unbiased estimate of the money the business expects to collect in the future.

Accepted Answer

A) True 
 B)False

Question 7

When a customer account is written off under the allowance method, the book value of accounts receivable decreases.

Accepted Answer

A) True 
 B)False

Question 8

Select the one term that best fits each definition
-The percentage of the principal that is due for the use of the funds secured by a note.

Accepted Answer

A)   aging of accounts receivable
B)   allowance method
C)   book value
D)   book value of accounts receivable
E)   dishonored noteF)  interest incomeG)  interest rateH)  maker of a noteI)  maturity dateJ)  maturity valueK)  net realizable valueL)  note payableM)  note receivableN)  payeeO)  percent of accounts receivable methodP)  percent of sales methodQ)  principalR)  promissory noteS)  time of a noteT)  writing off an account

Question 9

The percent of each age group of an accounts receivable aging that is expected to become uncollectible is determined by generally accepted accounting principles.

Accepted Answer

A) True 
 B)False

Question 10

Select the one term that best fits each definition
-The person or business that signs a note and thus promises to make payment.

Accepted Answer

A)   aging of accounts receivable
B)   allowance method
C)   book value
D)   book value of accounts receivable
E)   dishonored noteF)  interest incomeG)  interest rateH)  maker of a noteI)  maturity dateJ)  maturity valueK)  net realizable valueL)  note payableM)  note receivableN)  payeeO)  percent of accounts receivable methodP)  percent of sales methodQ)  principalR)  promissory noteS)  time of a noteT)  writing off an account

Question 11

Select the one term that best fits each definition
-A note that is not paid when due.

Accepted Answer

A)   aging of accounts receivable
B)   allowance method
C)   book value
D)   book value of accounts receivable
E)   dishonored noteF)  interest incomeG)  interest rateH)  maker of a noteI)  maturity dateJ)  maturity valueK)  net realizable valueL)  note payableM)  note receivableN)  payeeO)  percent of accounts receivable methodP)  percent of sales methodQ)  principalR)  promissory noteS)  time of a noteT)  writing off an account

Question 12

Interest income is classified as revenue from normal operations.

Accepted Answer

A) True 
 B)False

Question 13

The account Allowance for Uncollectible Accounts has a natural credit balance.

Accepted Answer

A) True 
 B)False

Question 14

The adjusting entry for uncollectible accounts reduces the balance of the Accounts Receivable account.

Accepted Answer

A) True 
 B)False

Question 15

Select the one term that best fits each definition
-The length of time from the signing date of a note to the maturity date.

Accepted Answer

A)   aging of accounts receivable
B)   allowance method
C)   book value
D)   book value of accounts receivable
E)   dishonored noteF)  interest incomeG)  interest rateH)  maker of a noteI)  maturity dateJ)  maturity valueK)  net realizable valueL)  note payableM)  note receivableN)  payeeO)  percent of accounts receivable methodP)  percent of sales methodQ)  principalR)  promissory noteS)  time of a noteT)  writing off an account

Question 16

Select the one term that best fits each definition
-The amount that is due on the maturity date of a note.

Accepted Answer

A)   aging of accounts receivable
B)   allowance method
C)   book value
D)   book value of accounts receivable
E)   dishonored noteF)  interest incomeG)  interest rateH)  maker of a noteI)  maturity dateJ)  maturity valueK)  net realizable valueL)  note payableM)  note receivableN)  payeeO)  percent of accounts receivable methodP)  percent of sales methodQ)  principalR)  promissory noteS)  time of a noteT)  writing off an account

Question 17

Select the one term that best fits each definition
-The amount of accounts receivable a business expects to collect.

Accepted Answer

A)   aging of accounts receivable
B)   allowance method
C)   book value
D)   book value of accounts receivable
E)   dishonored noteF)  interest incomeG)  interest rateH)  maker of a noteI)  maturity dateJ)  maturity valueK)  net realizable valueL)  note payableM)  note receivableN)  payeeO)  percent of accounts receivable methodP)  percent of sales methodQ)  principalR)  promissory noteS)  time of a noteT)  writing off an account

Exam 14: Uncollectible Accounts Receivable

The account Allowance for Uncollectible Accounts is reported on the income statement.

Correct Answer
verified

When a customer account is written off under the allowance method, the book value of accounts receivable decreases.

Correct Answer
verified

Select the one term that best fits each definition -The amount that is due on the maturity date of a note.

Correct Answer
verified

The book value of accounts receivable must be a reasonable and unbiased estimate of the money the business expects to collect in the future.

Correct Answer
verified

Select the one term that best fits each definition -The person or business that signs a note and thus promises to make payment.

Correct Answer
verified

Select the one term that best fits each definition -The length of time from the signing date of a note to the maturity date.

Correct Answer
verified

Select the one term that best fits each definition -The percentage of the principal that is due for the use of the funds secured by a note.

Correct Answer
verified

Interest income is classified as revenue from normal operations.

Correct Answer
verified

Select the one term that best fits each definition -The amount of accounts receivable a business expects to collect.

Correct Answer
verified

The accounting concept Neutrality is applied when the process of making accounting estimates is free from bias.

Correct Answer
verified

The percent of each age group of an accounts receivable aging that is expected to become uncollectible is determined by generally accepted accounting principles.

Correct Answer
verified

The adjusting entry for uncollectible accounts reduces the balance of the Accounts Receivable account.

Correct Answer
verified

Select the one term that best fits each definition -A note that is not paid when due.

Correct Answer
verified

The account Allowance for Uncollectible Accounts has a natural credit balance.

Correct Answer
verified

Select the one term that best fits each definition -Analyzing accounts receivable according to when they are due.

Correct Answer
verified

Select the one term that best fits each definition -The difference between the balance of Accounts Receivable and its contra account, Allowance for Uncollectible Accounts.

Correct Answer
verified

Select the one term that best fits each definition -The original amount of a note, sometimes referred to as the face amount.

Correct Answer
verified

Exam 14: Uncollectible Accounts Receivable

The account Allowance for Uncollectible Accounts is reported on the income statement.

Correct AnswerverifiedShow Answer

When a customer account is written off under the allowance method, the book value of accounts receivable decreases.

Correct AnswerverifiedShow Answer

Select the one term that best fits each definition -The amount that is due on the maturity date of a note.

Correct AnswerverifiedShow Answer

The book value of accounts receivable must be a reasonable and unbiased estimate of the money the business expects to collect in the future.

Correct AnswerverifiedShow Answer

Select the one term that best fits each definition -The person or business that signs a note and thus promises to make payment.

Correct AnswerverifiedShow Answer

Select the one term that best fits each definition -The length of time from the signing date of a note to the maturity date.

Correct AnswerverifiedShow Answer

Select the one term that best fits each definition -The percentage of the principal that is due for the use of the funds secured by a note.

Correct AnswerverifiedShow Answer

Interest income is classified as revenue from normal operations.

Correct AnswerverifiedShow Answer

Select the one term that best fits each definition -The amount of accounts receivable a business expects to collect.

Correct AnswerverifiedShow Answer

The accounting concept Neutrality is applied when the process of making accounting estimates is free from bias.

Correct AnswerverifiedShow Answer

The percent of each age group of an accounts receivable aging that is expected to become uncollectible is determined by generally accepted accounting principles.

Correct AnswerverifiedShow Answer

The adjusting entry for uncollectible accounts reduces the balance of the Accounts Receivable account.

Correct AnswerverifiedShow Answer

Select the one term that best fits each definition -A note that is not paid when due.

Correct AnswerverifiedShow Answer

The account Allowance for Uncollectible Accounts has a natural credit balance.

Correct AnswerverifiedShow Answer

Select the one term that best fits each definition -Analyzing accounts receivable according to when they are due.

Correct AnswerverifiedShow Answer

Select the one term that best fits each definition -The difference between the balance of Accounts Receivable and its contra account, Allowance for Uncollectible Accounts.

Correct AnswerverifiedShow Answer

Select the one term that best fits each definition -The original amount of a note, sometimes referred to as the face amount.

Correct AnswerverifiedShow Answer

Correct Answer
verified

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