Receivables are valued and reported in the statement of financial position at their gross amount less any sales returns and allowances and less any cash discounts. True or False

Which of the following entries is not one a firm would normally make? A)Debit cash, credit accounts receivable B)Debit cash, credit revenue C)Debit cash, credit salaries payable D)Debit cash, credit loans payable

Question 3

Accruals occur when the cash flow precedes either revenue or expense recognition. True/False?

The debts written off as bad, if recovered subsequently are   Oa. Credited to bad debts recovered account   O b. Credited to debtors account   C.Debited to profit and loss account       D.Debited to trading account

Sales Returns and Allowances account is report it like a. contra-revenue account on the income statement. b. current liability on the balance sheet. c. deduction from accounts receivable on the balance sheet. d. selling expense on the income statement.

Which of the following has a different effect on net profit than it does on cashflow? A.Cash sale to customer B.Payment for wages C.Payment for rent D.Depreciation of equipment

How do excessive inventories affect the following financial statements; Income Statement, Balance Sheet, and Cash Flow Statement. Is it positive or negative, be specific.

What’s the correct answer?

Which one of the following statements about revenue is not correct?A. Revenue can result in increases in accounts receivableB. Revenue can result in increases in liabilitiesC. Revenue is earned whenever cash is received from a customerD. Revenue is earned when a service is provided to a customer