FIN. ACCT.-TOOLS FOR BUS.DEC.MAKING-CODE
9th Edition
ISBN: 9781119595724
Author: Kimmel
Publisher: WILEY C
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The following statements pertain to the presentation and valuation of receivables.
Which is not in accordance with generally accepted practice?
Long-term notes receivables which nominally bear no interest or an interest which is
unreasonably low should be stated at face value.
Receivables denominated in foreign currency should be translated to local currency using
the exchange rate on Statement of Financial Position date
Credit balances in customer's accounts receivable should be classified as current liabilities
Receivable balances should be valued at face amounts minus allowance for doubtful
accounts and for any anticipated adjustments which in the normal course of events will
reduce the amount of receivable to estimated realizable value
Non-trade receivables are generally dassified and reported as separate iterns in the balance sheet or in a note that is cross-referenced to the balance sheet statement. Identily the non-trade reGeivables Irom the following given options. O a. Notes receivables • b. Cash receivables on sale of goods on credit O c. Dividends receivables O d. All
Which of the following is NOT a purpose of control accounts?
O a.
to identify all errors where the trial balance agrees
O b.
to provide a total for trade receivables and trade payables
О с.
to verify the accuracy of the individual ledger accounts
O d.
to assist in the preparation of financial statements
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- Cash consists of Multiple Choice Postage stamps Coins, currency, and chequing accounts IOUS Certificates of deposit Coins, currency, chequing accounts, and certificates of depositarrow_forwardA foreign currency account maintained by a bank abroad is its Oa. Nostro account Ob. Vostro áccount Oc. Loro account O d. Foreign bank accountarrow_forwardVostro Account will be credited in a. Foreign Currency O b. Home Currency O C. US Dollars O d. EURO.arrow_forward
- Read and T for True and F for False of the following phrases: The problems of foreign currency transactions lie in cash handling *True *Falsearrow_forward24) Identify, which of the statements are correct: I Cheque is used to make safe and convenient payment. II An issuer of cheque is called a drawee, and the one to whom it’s issued is called drawer. Correct answerarrow_forwardThe Reserve Bank of Australia's role in the processing of payment instructions is to: calculate the total balance of payment instructions deposited with a bank. verify that a payment instruction can be honoured by the writer. prevent non-bank financial institutions from allowing their customers to be provided with access to non-cash payment instruments. to record net differences in each financial institutions ES account. • Previous Nextarrow_forward
- Answer the following questions about recording uncollectible Accounts Receivable (A/R): a) Describe both the direct write-off method and the allowance method of recognizing uncollectible accounts receivable. In your descriptions, be sure to identify the specific major difference between the approach taken for each method when recording uncollectible A/R. b) Which method is in accordance with GAAP? Discuss the reasons why the other method is not in accordance with GAAP.arrow_forwardNostro accounts are not similar to deposit accounts— these demand deposit accounts are held in the currency of bank A’s existence, whereas Nostro account holds the balance in the currency of bank Q’s presence. Elaborate and explain Nostro, Vostro and Loro accounts with suitable illustration.arrow_forwardTrue or False. All payments by cheque are recorded in the cash payments journal. Any GST/HST paid on cash purchases are recorded in this journal as welarrow_forward
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