MULTIPLE CHOICE 1. These represent open accounts with customers. а. Trade receivables b. Nontrade receivables c. Accounts receivable d. Notes receivables 2. Upon initial recognition, accounts receivable are measured at a. Face value b. Discounted value c. Maturity value d. Net realizable value 3. Trade receivables that are expected to be collected within 12 months after the reporting period shall be presented in the statement of financial position at a. Net realizable value b. Maturity amounts c. Face amounts d. Discounted values 4. Receivables denominated in a foreign currency should be a. Translated to local currency using the exchange rate at the time of recognition b. Shown at face value of the foreign currency c. Translated to local currency using the exchange rate at closing rate d. Translated to local currency using the exchange rate when the financial statements are authorized for issue 5. Which valuation allowance is a proper deduction from trade accounts receivable in arriving at estimated realizable value? a. Allowance for doubtful accounts b. Allowance for trade discount c. Allowance for cash discount d. Allowance for freight charge

MULTIPLE CHOICE 1. These represent open accounts with customers. а. Trade receivables b. Nontrade receivables c. Accounts receivable d. Notes receivables 2. Upon initial recognition, accounts receivable are measured at a. Face value b. Discounted value c. Maturity value d. Net realizable value 3. Trade receivables that are expected to be collected within 12 months after the reporting period shall be presented in the statement of financial position at a. Net realizable value b. Maturity amounts c. Face amounts d. Discounted values 4. Receivables denominated in a foreign currency should be a. Translated to local currency using the exchange rate at the time of recognition b. Shown at face value of the foreign currency c. Translated to local currency using the exchange rate at closing rate d. Translated to local currency using the exchange rate when the financial statements are authorized for issue 5. Which valuation allowance is a proper deduction from trade accounts receivable in arriving at estimated realizable value? a. Allowance for doubtful accounts b. Allowance for trade discount c. Allowance for cash discount d. Allowance for freight charge

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 6PA: Funnel Direct recorded $1,345,780 in credit sales for the year and $695,455 in accounts receivable....

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