Skip to content

principlesofaccounting.com

About the Author
Mission Statement
Contact Us
Terms of Use
Privacy Policy
Log In

Menu

About the Author
Mission Statement
Contact Us
Terms of Use
Privacy Policy
Log In

Menu

Chapters 1-4The Accounting Cycle
Chapters 5-8Current Assets
Chapters 9-11Long-Term Assets
Chapters 12-14Liabilities/Equities
Chapters 15-16Using Information
- Chapter 15: Financial Reporting and Concepts
- Chapter 16: Financial Analysis and the Statement of Cash Flows
Chapters 17-20Managerial/Cost
Chapters 21-24Budgeting/Decisions

Chapters 1-4The Accounting Cycle
Chapters 5-8Current Assets
Chapters 9-11Long-Term Assets
Chapters 12-14Liabilities/Equities
Chapters 15-16Using Information
- Chapter 15: Financial Reporting and Concepts
- Chapter 16: Financial Analysis and the Statement of Cash Flows
Chapters 17-20Managerial/Cost
Chapters 21-24Budgeting/Decisions

Chapter 7 – Multiple Choice

By admin / August 17, 2015

Text
Problems
Goals Achievement
Fill in the Blanks
Multiple Choice
Glossary

Time limit: 0

Quiz Summary

0 of 8 Questions completed

Questions:

Information

You have already completed the quiz before. Hence you can not start it again.

Quiz is loading…

You must sign in or sign up to start the quiz.

You must first complete the following:

Results

Quiz complete. Results are being recorded.

Results

0 of 8 Questions answered correctly

Your time:

Time has elapsed

You have reached 0 of 0 point(s), (0)

Earned Point(s): 0 of 0, (0)
0 Essay(s) Pending (Possible Point(s): 0)

Categories

Not categorized 0%

1
2
3
4
5
6
7
8

Current
Review
Answered
Correct
Incorrect

Question 1 of 8

1. Question
Trade accounts receivable:
- arise from the sale of a company's products or services.
- are reported in the noncurrent asset section of the balance sheet.
- include deposits with utilities.
- generally comprise the minority of the total receivables balance.
Correct

Incorrect
Question 2 of 8

2. Question
Lundstrom Company began making sales on credit during 20X1. The company used the direct write-off method for uncollectible accounts. A material amount of uncollectible accounts resulting from sales made during 20X1 were written off during 20X2. What was the effect of this write-off on net income for 20X1 and 20X2?
- 20X1 – Overstate
  
  20X2 – Overstate
- 20X1 – Overstate
  
  20X2 – Understate
- 20X1 – Understate
  
  20X2 – Overstate
- 20X1 – Understate
  
  20X2 – Understate
Correct

Incorrect
Question 3 of 8

3. Question
Taylor Company uses the direct write-off method of recording uncollectible accounts receivable. Recently, a customer informed Taylor that he would be unable to pay $300 owed to Taylor. Taylor’s proper journal entry to reflect this event would be:
- Uncollectible Accts Expense 300
  
  Allow. for Uncollectible Accts 300
- Allow. for Uncollectible Accts 300
  
  Accounts Receivable 300
- Uncollectible Accts Expense 300
  
  Accounts Receivable 300
- Sales 300
  
  Accounts Receivable 300
Correct

Incorrect
Question 4 of 8

4. Question
Malcom’s financial statements revealed uncollectible accounts expense of $8,000, accounts receivable of $140,000, and allowance for uncollectible accounts of $12,000. The net realizable value of Malcom’s accounts receivable is:
- $128,000
- $132,000
- $136,000
- $152,000
Correct

Incorrect
Question 5 of 8

5. Question
Branz Company uses an aging method to account for uncollectible accounts. The aging revealed the need for a $22,000 account balance at the end of the period. The beginning-of-period balance was $10,000 and $9,000 in accounts were actually written off during the period. Which of these reflects the correct journal entry to update the allowance account based on the aging analysis?
- Accounts Receivable 21,000
  
  Allow. for Uncollectible Accts 21,000
- Uncollectible Accts Expense 21,000
  
  Accounts Receivable 21,000
- Uncollectible Accts Expense 21,000
  
  Allow. for Uncollectible Accts 21,000
- Allow. for Uncollectible Accts 21,000
  
  Accounts Receivable 21,000
Correct

Incorrect
Question 6 of 8

6. Question
Lindy Company uses an allowance method to account for bad debts. Lindy estimates that 5% of the outstanding accounts receivable will be uncollectible. At the end of the year, Lindy has outstanding accounts receivable of $750,000, and a debit balance in the Allowance for Uncollectible Accounts of $9,000. Lindy should record uncollectible accounts expense of:
- $28,500
- $37,500
- $46,500
- $55,500
Correct

Incorrect
Question 7 of 8

7. Question
Flynn Company uses an allowance method for recording uncollectibles. Flynn determined that $4,000 due from Mitchell will not be collected. The entry Flynn should record to write off the Mitchell account is:
- Uncollectible Accts Expense 4,000
  
  Accounts Receivable 4,000
- Sales 4,000
  
  Accounts Receivable 4,000
- Uncollectible Accts Expense 4,000
  
  Allow. for Uncollectible Accts 4,000
- Allow. for Uncollectible Accts 4,000
  
  Accounts Receivable 4,000
Correct

Incorrect
Question 8 of 8

8. Question
John Company uses an allowance method for recording uncollectible receivables. John was notified by Paul that payment on a $1,000 receivable would be forthcoming. John had previously written off the receivable from Paul. The proper journal entry for John to record to reinstate the receivable into the accounts is:
- Accounts Receivable 1,000
  
  Allow. for Uncollectible Accts 1,000
- Allow. for Uncollectible Accts 1,000
  
  Sales 1,000
- Accounts Receivable 1,000
  
  Sales 1,000
- Accounts Receivable 1,000
  
  Uncollectible Accounts Expense 1,000
Correct

Incorrect

Classroom

Study principlesofaccounting.com and earn college credit!

Bookstore

Visit the bookstore and purchase principlesofaccounting.com textbooks!

Additional Resources

IMPORTANT LINKS

Classroom
ExamCram
Bookstore
YouTube videos
MyExceLab
Cookie Policy

GLOSSARY SEARCH

Youtube

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.Ok

Quiz Summary

Information

Results

Results

Categories

1. Question

2. Question

3. Question

4. Question

5. Question

6. Question

7. Question

8. Question

Illustrative Entries

Account Types

Glossary

Time Value of Money

IMPORTANT LINKS

GLOSSARY SEARCH