ACC 291 Week 1 Practice Quiz

ACC 291 Week 1 Practice Quiz

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 ACC 291 Week 1 Practice Quiz



Practice Question 01































What type of receivable is evidenced by a formal instrument and normally requires the payment of interest?
















A trade receivable

















An account receivable

















A note receivable

















Past-due accounts receivables




Practice Question 05

When is a receivable recorded by a service organization?
















When service is provided on account

















When the related expenses are incurred

















When the bill is sent to the customer

















When the customer pays



Practice Question 10































At what value are accounts receivable reported on the balance sheet?
















Cash (net) realizable value

















Present value

















Maturity value

















Fair market value



Practice Question 21































Short-term notes receivable are reported at their cash (net) realizable value.




































Practice Question 25































Which one of these statements about promissory notes is incorrect?
















The party to whom payment is to be made is called the payee.

















The party making the promise to pay is called the maker.

















A promissory note is not a negotiable instrument.

















A promissory note is more liquid than an account receivable.




Practice Question 02

Which of the following should be classified as an “other” receivable?
















Accounts receivable

















Notes receivable

















Interest receivable

















Trade receivables



Practice Question 03































What type of receivables result from sales transactions?
















Other receivables

















Non-trade receivables

















Trade receivables

















Long-term receivables




Practice Question 52

Which one of the following is not a method used by companies to accelerate cash receipts?
















Offering discounts for early payment

















Writing off receivables

















Selling receivables to a factor

















Accepting national credit cards for customer purchases




Practice Question 53

Which of the following accounts is debited when a company factors its accounts receivable?
















Interest Expense

















Accounts Receivable

















Service Charge Expense

















Loss on Sale of Accounts Receivable




Practice Question 57

Which of the following is the value at which loans and receivables should be reported under IFRS?
















Maturity value

















Cash realizable value

















Amortized cost

















Net of bad debt expense
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