acc 201 final😳
Trade receivables and other receivables should be reported
as separate items on the balance sheet
Bad Debt Expense is reported on the income statement as
an operating expense
he entry to recognize the bad debt expense (increase/decrease) current assets when the allowance method is used.
decreases
The interest rate for a three-month loan is normally stated as a(n) (monthly/yearly) rate.
yearly
________ risk is a threat of nonpayment from a single large customer that could adversely affect the financial health of a company
A concentration of credit
___________ is often the most critical part of managing receivables.
Determining who gets credit and who doesnot
Cash realizable value is the term for the (net/gross) amount expected to be received in cash from receivables.
Net
Return on common stockholders' equity
Net income - Preferred dividends) by average common stockholders' equity.
___________________ financing is an intentional effort by a company to structure its financing arrangements to avoid showing liabilities on its balance sheet.
Off balance sheet
what would cause an increase in both total assets and total liabilities
a capital lease
trade receivable is same as
accounts receivable
Liquidity is a ratio companies use to assess the
accounts receivable turnover
f bonds are issued at a premium, then the
carrying value of the bonds will be greater than the face value of the bonds for all periods prior to the bond maturity date.
How is the account Allowance for Doubtful Accounts classified
contra account to Accounts Receivable
What does a high accounts receivable turnover ratio indicate?
customers are making payments very quickly
Notes receivable are written promises that are considered
formal instruments of credit.
What is the retailer's involvement in the collection process when a customer pays with a national credit card?
no involvement in the collection process.
value assigned per share in the corporate charter.
par value mean
