1
Marks: 5
Which of the following events involves an accrual?
Choose one answer. | a. Recording interest that has been earned but not received | | | b. Recording supplies that have been purchased with cash but not yet used. | | | c. Recording revenue that has been earned but not yet collected in cash. | | | d. A. and C. | |
Correct
Marks for this submission: 5/5.
Question 2
Marks: 5
Which resource provider typically receives first priority when resources are divided as part of a business 's liquidation?
Choose one answer. | a. stockholders | | | b. owners | | | c. the company 's managers | | | d. creditors | |
Correct
Marks for this submission: 5/5.
Question 3
Marks: 5
Which of
…show more content…
| | | c. Allowance for doubtful accounts. | | | d. The present value of accounts receivable. | |
Correct
Marks for this submission: 5/5.
Question 3
Marks: 5
The practice of reporting the net realizable value of receivables in the financial statements is commonly called:
Choose one answer. | a. the cash flow method of accounting for bad debts. | | | b. the direct write-off method of accounting for bad debts. | | | c. the allowance method of accounting for bad debts. | | | d. Both a and b are correct. | |
Correct
Marks for this submission: 5/5.
Question 4
Marks: 5
What does the accounts receivable turnover ratio measure?
Choose one answer. | a. How quickly the accounts receivable balance increases. | | | b. How quickly inventory turns into accounts receivable. | | | c. How quickly accounts receivable turn into cash. | | | d. Average balance of accounts receivables. | |
Correct
Marks for this submission: 5/5.
Question 5
Marks: 5
Which of the following businesses would most likely have the longest operating cycle?
Choose one answer. | a. A national pharmacy chain. | | | b. A discount store. | | | c. A producer of wine. | | | d. A chain of pizza restaurants. | |
Incorrect
Marks for this submission: 0/5.
1
Marks: 5
What is the name used for the type of secured bond that requires a pledge of a designated piece of property in case of default?
Choose
(TCO 2) A statement that reports inflows and outflows of cash during the accounting period in the categories of operations, investing, and financing, is called a(an):
Suppose that Katherine, Brianna, and Paige have formed a limited partnership to operate a video arcade. Katherine is the general partner. She has contributed $2,000 and her time to get the operation running. Brianna and Paige, the limited partners, have each contributed $3,000. After one year of operation, the arcade has debts of $10,000, and the three partners decide to discontinue their business and the limited partnership. Brianna and Paige want their investment returned to them. Who should Katherine, who is winding up the business, pay first, Brianna and Paige, or the creditors? How much will Brianna and Paige receive? How about Katherine?
The definition of unrealized receivables is broad enough to encompass assets other than accounts receivable. §751(a) also includes assets that are NOT capital assets or §1231 assets that would produce ordinary income if sold by the partnership. Items such as depreciation recapture are also classified as unrealized receivables. Thus, a partnership can have unrealized receivables without having accounts receivable.
Name given to certificates: Labels on documents conclude that the advances say they are debt, but labels alone cannot change equity to debt. This factor favors the advances treated as debt, but there is less weight to this factor because it is based on form rather than substance.
a. Is computed by dividing net credit sales for the accounting period by the cash realizable value of accounts receivable on the last day of the accounting period.
“Individuals and businesses lend their savings to borrowers. In exchange, borrowers give lenders a debt instrument, which is called bonds, representing a promise by borrowers to pay interest income to lenders on the principal (the amount of money borrowed) until the principal is repaid to the lenders” (Feldstein & Fabozzi, 2011).
This type of bond is required by a person who’s been assigned to disperse properties of one’s estate. Being that there is an expected
When an account receivable is determined to be uncollectable it is no longer qualified as an asset and should be written off. A write off reduced the balance of the customers
A surety bond is an agreement between three parties: the party requiring the work, the insurer, and the party performing the work. A surety bond protects the party who requires the work if the performing party doesn’t perform their job duties. Typically, contractors, manufacturers, and vendors are required to have a bond due to
Typically, that purchased property is pledged to the lender as "security," for the loan, meaning that if the debtor fails to repay the lender, the lender can then repossess that "security-property," in order to satisfy the loan.
Please note you have three assignments for this week. The case study, the weekly assignment and continue working on the final draft for the individual research project.
A bond is a "security" which gives the holder a financial claim on the issuer. This claim protects the holder in circumstances in which the issuer is unable to pay the amount due. It is made formal by the "trust indenture", a legal document, which specifies all of the bond's features and the legal rights and obligations of all the parties to the agreement (http://www.finpipe.com/bndchar.htm).
With the current economic trends, and the diverse financial status of many businesses and individuals, the reorganization, downsizing and at times disposal of companies is a common trend. In order for you to get the value for your business, Pat Marsh offers a flexible service and an end-to-end service that will save you the costs of having to go across several organizations for valuation, liquidation process and auctioning.
Account receivables are used as a type of asset – financing to determine the outstanding invoices or the money owed by the customers. The account receivables can help finance companies by boosting its cash flows. It focuses on trying to collect bills from customers. The unpaid invoices are also considered in the account receivables and referred as bad debts. Bad debts are debts that customers are not able to pay either because they are bankrupt.