QUESTION 4The key to the classification of an amount as cash is that it be available to pay debts within a three-month period of time.O TrueFalse

Hello student! This statement is in fact true. Cash Equivalents are those assets that are easily…

Answered: QUESTION 4 The key to the…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 12MC: Which of the following accounts are used when a short-term note payable with 5% interest is honored...

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QUESTION 4 In credit terms of 3/15, n/45, the "3" represents the a. full amount of the invoice b. number of days when the entire amount is due c. number of days in the discount period O d. percent of the cash discount
ro.14 Defining common receivalles terms Metch the terms with their correct definition. Lear Definitions Terms a. The party to a credit transaction who takes on an obligation/payable. b. The party who receives a receivable and will collect cash in 1. Accounts receivable 2. Other receivables 3. Debtor the future. C. A written promise to pay a specified amount of money at a particular future date. 4. Notes receivable 5. Maturity date d. The date when the note receivable is due. e. A miscellaneous category that includes any other type of receivable where there is a right to receive cash in the future. 6. Creditor f. The right to receive cash in the future from customers for goods sold or for services performed.
Determine if this shall result in recognition of liabilities 10. receipt of cash from a customer for goods to be delivered next month a. yes b. no
Match the term with its definition. Allowance Method Cash Factoring Net Realizable Value Percentage-of-Receivables Method Restricted Cash A procedure that records unc [Choose ] Time Elapsed: Hide Time Attempt due: Apr 7 at 11:59pm 18 Hours, 38 Minutes, 32 Seconds The amount of the accounts receivable balance that the company actually expects to receive. Correct Answer A procedure that records uncollectible accounts by recording the bad debt expense on an estimated basis in the accounting period in which the sale on accout takes place. C A method of selling accounts receivable where the seller guarantees payment to the purchaser in the event the debtor fails to pay. Correct Answer short term investments with a maturity date of three months or less Generated through transactions from customers for goods bought or services rendered. Correct Answer When material, is required to be segregated and shown as either a current or long term asset on the balance sheet depending on it's expected…
In the credit terms of 3/15, n/45, the "3" represents the a. Number of days when the entire amount is due b. Full amount of the invoice c. Percent of the cash discount d. Number of days in the discount period
D1. What is the average balance of receivables greater than 120 days due $
2. The time period during which the invoice is paid is called: A. Rate of discount В. Discount period C. Credit period D. Net amount
1. What is the cash balance in the trial Balance? A. 408500 on the credit side B. 396500 on the debit side C. 396500 on the credit side D. 408500 on the debit side 2. What are account receivable balance in the Trial Balance? A. 0 B. 10000 C. 2000 D. 12000
The entry to record accrued interest on a note receivable would include a: debit to Cash credit to Interest Revenue credit to Interest Payable both a. and c both a. and b. 0 1 pts
ertificate of deposit is classified as “cash equivalent” if it matures in a. Less than three months b. More than three months c. More than six months d. Less than six months
Which of the following accounts will get affected when cash is received from sale made on account in the last month? O a. Cash and Salary Expense O b. Cash and Notes Payable O c. Cash and Accounts Receivable Od. Cash and Service Revenue
The type of cash discount where the discount period is counted from the date of invoice is ___. a. Ordinary dating b. Credit period c. Receipt of goods d. End of the month

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QUESTION 4 The key to the classification of an amount as cash is that it be available to pay debts within a three-month period of time. O True False