The following item is not a debt: Dividends payable in shares. Advances paid by clients on contracts. Accumulated estimated warranty costs. The portion of a long-term obligation to be paid within the next year. b. Accounts payable: They are not reported at their present value. When they report their net amount, a Purchase Discounts account is used; when they are reported at their gross amount, the account of Losses due to discounts on purchases is used. All of the above. None of the above.

The following item is not a debt: Dividends payable in shares. Advances paid by clients on contracts. Accumulated estimated warranty costs. The portion of a long-term obligation to be paid within the next year. b. Accounts payable: They are not reported at their present value. When they report their net amount, a Purchase Discounts account is used; when they are reported at their gross amount, the account of Losses due to discounts on purchases is used. All of the above. None of the above.

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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Which method delays recognition of bad debt until the specific customer accounts receivable is identified? A. income statement method B. balance sheet method C. direct write-off method D. allowance method
The net figure for accounts receivable (debtors) after deducting the allowance for uncollectible debts account: Select one: a. overstates the realisable value of debtors. b. is a contra account. c. understates the realisable value of debtors. d. represents the expected cash to be collected. e. None of the above answers is correct.
How would each of the following items be reported on the balance sheet? a. Accrued vacation pay. b. Estimated taxes payable. c. Service warranties on appliance sales. d. Bank overdraft. e. Employee payroll deductions unremitted. f. Unpaid bonus to officers. g. Deposit received from customer to guarantee performance of a contract. h. Sales taxes payable. i. Gift certificates sold to customers but not yet redeemed. j. Premium offers outstanding. k. Discount on notes payable. l. Personal injury claim pending. m. Current maturities of long-term debts to be paid from current assets. n. Cash dividends declared but unpaid. o. Dividends in arrears on preferred stock. p. Loans from officers.
The trade and other receivables note will include the following items? A. Debtors control + allowance for credit losses - prepaid expenses B. None of the above C. Debtors control - allowance for credit losses - accrued expenses D. Debtors control - allowance for credit losses + prepaid expenses E. Debtors control + allowance for credit losses + prepaid expenses
Southwest Pedlatrics has the following balances on December 31, 2021, before any adjustment: Accounts Recelvable = $124,000; Allowance for Uncollectible Accounts = $2,100 (debit). On December 31, 2021, Southwest estimates uncollectible accounts to be 20% of accounts recelvable. Required: 1. Record the adjusting entry for uncollectible accounts on December 31, 2021. (If no entry Is required for a particular transactlon/event, select "No Journal Entry Requlred" In the first account fleld.) View transaction list Journal entry worksheet 1 > Record the adjusting entry for Uncollectible Accounts. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2021 Record entry Clear entry View general journal
. Which method of recording bad debt loss is consistent with accrual accounting? a. Allowance method b. Direct writeoff method c. Percent of sales method d. Percent of accounts receivable method - When the allowance method is used, the entry to record the writeoff of a specific account would Decrease both accounts receivable and the allowance b. Decrease accounts receivable and increase allowance Increase both accounts receivable and the allowance d. Increase accounts receivable and decrease the allowance 3. Under the allowance method, the journal entry to record the writeoff of a specific uncollectible account a. Affects neither net income nor working capital b. Affects neither net income nor accounts receivable c. Decreases both net income and working capital d. Decreases both net income and accounts receivable 4. Under the allowance method, the entries at the time of collection of an account previously written off would a. Decrease the allowance for doubtful accounts b. Increase net…
1. Distinguish between a current liability and a long-term debt. 2. Why is the liabilities section of the balance sheet of primary significance to bankers? 3. What is the nature of a discount on notes payable? 4. Under what conditions must an employer accrue a liability for the cost of compensated absences? 5. Under what conditions should short-term obligation be excluded from current liabilities? 5.
Using the allowance method, the entry to record a write-off of accounts receivable will include a. A debit to Bad Debt Expense.b. A debit to Allowance for Uncollectible Accounts. c. No entry because an allowance for uncollectible accounts was established in an earlier period. d. A debit to Service Revenue.
Indicate whether each statement best describes the allowance (A) method or the direct write-off (DW)method. Estimates bad debts expense related to the sales recorded in that period.
Which of the following is not a liability? A. Notes payable. B. Current portion of long-term debt. C. Deferred revenue. D. An unused line of credit.
Which of the following statements is false? Select one: a. The separation of current debt from long-term debt is done on the date of the balance sheet b. Each year, the amount of long-term debt would increase, as a portion is classified as current debt. c. Current assets include cash, accounts receivable and prepaid insurance. d. Long-term assets include vehicles, computers and furniture.
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