Which of the following expresses the distinction between accounts receivable and notes receivable? Accounts receivable requires payment of interest; notes receivable does not. Notes receivable generally specifies an interest rate and a maturity date at which any interest and principle must be repaid; accounts receivable does not. Notes receivable results from credit sale transactions for merchandising companies; accounts receivable results from credit sale transactions for service companies. Accounts receivable usually includes current assets; notes receivable usually includes noncurrent assets.

Q: An account issued by banks yielding a market rate of interest with a minimum balance requirement and…

A: Certificate of deposit is a certificate issued by the banks for fixed period, there is no…

Q: What are some common types of receivables other than accounts receivable and notes receivable?

A: Receivables are the amount due to be received in future such as accounts receivable, notes…

Q: is the practice of selling a note receivable by the payee before the maturity date of the note. a.…

A: Discounting refers to getting a bills of exchange paid before the date of maturity. The face value…

Q: An account that is classified as a contra-revenue: O a. may include sales discounts and credit card…

A: Solution: A contra revenue account is reverse of revenue account i.e. contra revenue accounts is…

Q: The "principal" of a note receivable refers to: a.the amount of cash borrowed. b.the present value…

A: The principal amount of a note receivable is the amount of cash borrowed.

Q: Which of the following is correct when a company uses the net price method of recording receivables?…

A: Under net method, the sales are initially recorded with the net amount after deducting the amount of…

Q: Indicate whether each of the following statements is true or false. a) Loaning cash to another…

A: Cash flow from operating activities: In this part of the cash flow statement, cash is indicates the…

Q: When a company earns interest on a note receivable or on a bank account, the debit and credit are as…

A: Note Receivable:-It is a promissory note where the written promise to pay the amount at some future…

Q: Which of the following is considered receivables? (select all that applies)  rents   note payables…

A: Receivables are the amounts that are expected to be received by an entity either at present day or…

Q: What is the difference between an account receivable and a note receivable?

A: Receivable: It can be defined as the amount that is owed by the customers from the business.

Q: The trade and other receivables note will include the following items? A.Debtors control +…

A: Trade and other receivables form a part of current assets and include the amount owed by the…

Q: Notes receivable differ from accounts receivable in that notes receivable represent written debt…

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Q: The companies dispose their accounts receivable because

A: The Companies in the normal course usually dispose their accounts receivables because it relieves…

Q: What is a receivable?  List two types of receivables and their definitions.

A: Note: Since you have posted multiple questions, we will solve the first question. Please submit a…

Q: Receivables arising from sales to customers are best described as Select the correct response: Notes…

A: Revenue earned from sales to customers is a trading activity. Hence, the receivables from this…

Q: On a bank reconciliation, the adjusting entry to record interest carned should be: OA. O B. OC. O D.…

A: Bank reconciliation statement is the statement which is prepared to reconcile cash balance as per…

Q: accounts receivable

A: Account receivable refers to the process of payment that the company should receive from the…

Q: Which of the following is true when accounts receivable are factored without recourse? a. The…

A: Accounts receivable factoring without recourse means that the factoring company is not retaining…

Q: Why might a business prefer a note receivable to an account receivable?

A: An account receivable is a simple promise to repay the seller done by customer which is due as a…

Q: Match each of the activities listed below with a purpose of the activity listed below.

A: An organisation whose motive is to procure income  through selling goods & services to the…

Q: Non-trade receivables are generally dassified and reported as separate iterns in the balance sheet…

A: The receivables can be distinguished as non trade receivables and trade receivables.

Q: What is the difference between accounts receivable and notes receivable?

A: Note receivable is the instrument that represents the amounts of money borrowed or receivables…

Q: A note receivable bearing a reasonable interest rate is sold to a bank with recourse. The note…

A: If the notes receivable have been discounted with recourse, the contra asset would be recognized in…

Q: Which of the following will most likely provide the most assurance concerning theaccuracy…

A: Accuracy is one of the balance sheet related audit objective which assures that all the amounts…

Q: If the allowance method of accounting for uncollectible receivables is used, what general ledger…

A: Allowance method:   It is a method for accounting for uncollectible receivables, where uncollectible…

Q: A note receivable is dishonoured on the maturity date. The journal entry to record the same in the…

A: A dishonored note is a note that the maker failed to pay at maturity. Thus, the payee of the note…

Q: Credit sales are recorded by crediting an account receivable for specific customer. True or false?

A: Lets understand the meaning of credit sales. Credit sales refers to transferring ownership of goods…

Q: How do each of the items in a firm’s credit policy—defined to include the credit period, the…

A: Strong credit policy indicates the effectiveness of credit management. The four components of credit…

Q: All of the following are ways in which receivables are commonly classified in financial statements…

A: The question talks about the ways of classification of receivables in financial statements.…

Q: How to determine the unadjusted balances of accounts receivable by using the percent of sales method…

A: There are two methods to determine the uncollectibles out of the credit sales. 1. Percentage of…

Q: match the correct term for each of the following descriptions. Descriptions Terms Examples of these…

A:

Q: . Accounts receivable financing is the term used to describe which of the following types of loans…

A: In Accounts receivable financing companies make a collateral of its account receivables to get loan…

Q: Which method, the percentage-of-receivables method or the percentage-of-credit-sales method, is…

A:

Q: What are the three classifications of receivables? Which does your company have? Look in the notes…

A: Accounts Receivables: Accounting for accounts receivable (AR) is the amount of money owed to a…

Q: 1. This is the criterion to determine whether the transfer is accounted for as borrowing.…

A:

Q: The bank statement showed a non-interest bearing note receivable from a customer that was collected…

A: Bank reconciliation is the statement that shows the differences in the cash balances as per pass…

Q: can you please explain the difference between Accounts Receivable, Notes Receivable and accepting…

A: Answer: The accounts receivables, notes receivables and accepting credit cards are form of the cash…

Q: _____ is the example of Liabilities.     Sales     Supplies in Hand     Account Receivables…

A: The Question has covered the concept of Liabilities. Liability means which have an obligation to…

Q: The following information pertain= Credit sales Accounts payable Accounts receivable Allowance for…

A: The amount that will not be collected is referred to as bad debt.  The factors that contribute to…

Q: "In accounts receivable management, credit analysis is the process of determining the probability…

A: Financial management means managing the funds and sources of funds from where funds will be…

Q: What does an increasing collection period for accounts receivable suggest about a firm's credit…

A: The credit policy of a firm means the policies and conditions attached to lending goods and services…

Q: The difference between the accounts receivable and the cash collection may be due to the following…

A: Trade discounts: Trade discounts is the discount which is given at the time of sale by which a…