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

Q: How do the percent-of-receivables and aging-of-receivables methods compute bad debts expense?

A: In percent of receivables, bad debt expenses are computed as a percentage of total receivables…

Q: and

A: Answer: Income statement-Negative effect: Inventories are not recorded in the income statement.…

Q: Which of the following is included under the financing activities in O Payment of salaries to…

A: Solution: Financing activities are those activities which includes transactions related to sources…

Q: Explain in details the accounts receivables and bad debts?

A: Company is carrying the sales activity after performing the cost ascertainment method. In order to…

Q: Which is better to have? Accounts receivable or notes receivable? And why?

A: Accounts receivable are current assets which represent amounts to be collected from customers for…

Q: Net Income when debit balance and credit balances are the same

A: In the above questions we have asked about net income when debit and credit balance are equal.

Q: Calculate the cost (as a percentage) of not accepting discounts from creditors in  settlement of…

A: Given the credit terms are 5/10 net 90 days which means if the company pays within 10 days a 5%…

Q: ne Income Statem

A: The correct statement is  False

Q: What is the difference between a nominal account and a real account?

A: The various accounts in the business are classified as personal accounts, real accounts, and nominal…

Q: The trade and other receivables note will  include the following items.

A: Trade and other receivables means amount to be received from customers on account of credit sales…

Q: Which of the following is false about the discount on short-term notes payable? * O The Discount on…

A: Notes payable is a written contract which specified a certain payment at a specified data along with…

Q: Which of the following represents amounts owed for goods, supplies, or services purchased? Group of…

A: The question is asking to identify the term that represents the amounts that a company owes for…

Q: Accounts Receivables and Inventories can also be used as collateral. O Right O Wrong

A: The Numerical has covered the concept of Collateral. The Collateral used as security for repayment…

Q: Which of the following applications of the rules of debit and credit is true?

A: Debit and credit are the left and right sides of a T-account. Depending on the type of account, the…

Q: nterest payable, retained earnings, and sales revenue have a balance whereby credits normally exceed…

A: Entry ledger have a balance of debit , credit or nil balance. Every assets and expenses are having…

Q: Which of the following are the suppliers of goods/services whose invoices have not yet been paid? a.…

A: Accounting can be done in  both cash and accrual method

Q: On the Balance Sheet, the Allowance for Doubtful Accounts account is: Osubtracted from the Accounts…

A: Note: Under Direct write off method, bad debts expense are recorded when company is sure that amount…

Q: In what way do accounts receivables and accounts payables differ from each other

A: Solution: Accounts receivables represent amount owed by customer for merchandise sold by business.…

Q: What is the meaning of present value of notes receivable.

A: To understand the present value of notes receivable, first we need to understand what note…

Q: Which of the following groups of accounts increase with a credit? a.common stock, revenues,…

A: For recording any transaction in accounting, there must be two aspects, debit and credit. A credit…

Q: In the deposit function, banks treat interest as income. True False

A: The deposit function function is the creation of deposits through credit extension, either in the…

Q: From page 5-3 of the VLN, what is the appropriate relationship to compute net accounts receivable?…

A: Customers who have received goods or services from a business but haven't yet made payment are said…

Q: In a current account, the payee is the debtor and the drawee is the creditor. True False

A: Lets understand the basics. Payee is a person on whom payment is needs to make so he is a creditor.…

Q: What is the difference between a nominal account and a real account?

A: Nominal Account: These are the accounts that pertain to Incomes (or Revenues) and Expenses. Thus,…

Q: A debit balance in the Income Summary account represents a net loss. O True O False

A: The income summary account is a nominal account used to close the temporary accounts of the business…

Q: deficit

A: If the total asset is smaller than total liabilities and equity on the balance sheet it means a…

Q: Short answer Which is more relevant to an investor; Accounts Receivable or Accounts Receivable, Net?…

A: Investors are an important class of stakeholders for every company. The contribute to the…

Q: In methods of estimating doubtful accounts, how does income statements approaches differ from…

A: Income Statement Approach: under this approach, the estimated amount of bad debts expense is…

Q: Explain why the percentage-of-receivables method is referred to as the balance sheet method and the…

A: Percentage-of-receivables method:   It is a method of estimating the bad debts (loss on extending…

Q: The only effect of a change in the investment of accounts receivable is the extra interest to be…

A: Company provide credits to customers and later recover the money from customers these are account…

Q: TRUE OR FALSE? The debit balances in suppliers' accounts should be netted against accounts payable.

A: Accounts payable is the amount owed by the business entity towards the suppliers in respect of the…

Q: The amount reported on the balance sheet for accounts receivable (gross accounts receivable minus…

A: The Trade Accounts Receivable are indeed an highly liquid assets that can be easily converted into…

Q: Financial liabilities deliver cash. True False

A: Financial liabilities refer to the obligations or debts that a company or individual owes to…

Q: The timing of income from services can often be controlled through the use of: a.U.S. GAAP…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Which of the following normally has a net credit balance? A. Asset accounts such as cash, accounts…

A: Credit Balance :— It means Credit is greater than debit. It is listed in credit side of trial…

Q: What is the impact on the accounting equation when an accounts receivable is collected?A. both sides…

A: Accounting equation is one of the important concept used in accounting. Three elements of accounting…

Q: Which of the following is NOT included in the financial assets? A. Cash. B. Investments in…

A: The financial assets include the liquid assets of the business.

Q: Answer the following questions in depth .... Isn't estimating bad debts a way of manipulating net…

A: A company's bad debt value has been frequently calculated based on prior results. This amount is…

Q: Which one of the following accounts is unlikely to ever be seperately disclosed in the income…

A: Financial statement:The financial statement is the statement or the record that is prepared by the…

Q: Current assets in order of liquidity are cash, marketable securities, inventory, and accounts…

A: Current assets are those assets which are expected to be sold, consumed or used within the operating…

Q: What are the differences between Notes Payable and Accounts Payable?

A: Explain the difference between a note payable and an account payable as follows:Notes payable: A…

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.