6.Trade receivables are classified as current assets when they are reasonably expected to becollecteda. Within one yearb. Within the normal operating cyclec. Within one year or within the normal operating cycle whichever is shorterd. Within one year or within the normal operating cycle whichever is longer7.Nontrade receivables are classified as current assets only if they are reasonably expected tobe realized in casha. Within one year or normal operating cycle, whichever is shorter.b. Within the normal operating cyclec. Within one year or the normal operating cycle, whichever is longerd. Within one year, the length of the operating cycle notwithstanding8.Which is true concerning the balance sheet presentation of receivables?a. Trade receivables and nontrade receivables are shown separately.b. Nontrade receivables are presented as noncurrent assets.c. Trade accounts receivable and trade notes should be presented separately.d. Trade receivables and nontrade receivables, which are currently collectible, shall bepresented as one line item called "trade and other receivables".9.A discount given to a customer for purchasing a large volume of merchandise is typicallyreferred to asa. Quantity discountb. Cash discountc. Trade discountd. Size discount10.Which of the following is false in relation to cash and trade discounts?a. Cash discounts are reductions in the invoice price allowed when payment is made withinthe discount period while trade discounts are reduction from the list price or catalog pricein order to get the invoice price or amount actually charged to the buyer.b. Cash discounts are recorded but trade discounts are not recorded.c. The purpose of cash discounts is to encourage prompt payment while the purpose oftrade discounts is to encourage trading or promote sales.d. Both purchases with trade and cash discounts should be recorded at net.

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6. Trade receivables are classified as current assets when they are reasonably expected to be collected a. Within one year b. Within the normal operating cycle c. Within one year or within the normal operating cycle whichever is shorter d. Within one year or within the normal operating cycle whichever is longer

6. Trade receivables are classified as current assets when they are reasonably expected to be collected a. Within one year b. Within the normal operating cycle c. Within one year or within the normal operating cycle whichever is shorter d. Within one year or within the normal operating cycle whichever is longer

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 13MC: Which of the following is not a characteristic of a short-term note payable? A. Payment is due in...

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29. Current liabilities are obligations whose liquidation is reasonably expected to require the use of existing current assets or the creation of other current liabilities withina. an operating cycle.b. one year.c. one year or operating cycle, whichever is shorter.d. one year or operating cycle, whichever is longer.
The future value of annual deposited started from the end of period one up to year 7, is: Select one: a. A(F/A,i,7) b. A(F/A,i,6) C. P(F/A,i,7) d. P(F/A,i,6)
52. A note receivable in installment at the end of each period: Group of answer choices shall be presented as current asset (total carrying value) at all times. nominal interest received will increase in the future. collection to principal shall reduce the amount of interest to be received in the future. shall be presented as noncurrent asset (total carrying value) at all times.
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. Estimate the duration of Deposit NBank Balance SheetCash = $ 50Loan M (7%, 6 years) = $200Deposit N (3 years, 2%) = $ 200Equity = $ 50Total Assets = $250Total Liabilities = $ 250 a.1.94 b. 2.94 c. 3.94 d. 4.94
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