Financial Accounting
|1. |Notes Receivable and Accounts Receivable can also be called trade receivables. |True False |
|2. |Receivables not currently collectible are reported in the investments section of the balance sheet. | |
| | |True False |
|5. |Both Accounts Receivable and Notes Receivable represent claims that are expected to be collected in cash. | |
| | |True False |
|6. |When companies sell their receivables to other companies, the transaction is called factoring. | |
| | |True False |
|7. |Of the two methods of accounting for uncollectible receivables, the allowance method provides in advance for uncollectible | |
| |receivables. |True False |
|8. |Generally accepted accounting principles do not normally allow the use of the direct write-off method of accounting for | |
| |uncollectible accounts. |True False |
|9. |The direct write-off method records Bad Debt Expense in the year the specific account receivable is determined to be |
|2. |Receivables not currently collectible are reported in the investments section of the balance sheet. | |
| | |True False |
|5. |Both Accounts Receivable and Notes Receivable represent claims that are expected to be collected in cash. | |
| | |True False |
|6. |When companies sell their receivables to other companies, the transaction is called factoring. | |
| | |True False |
|7. |Of the two methods of accounting for uncollectible receivables, the allowance method provides in advance for uncollectible | |
| |receivables. |True False |
|8. |Generally accepted accounting principles do not normally allow the use of the direct write-off method of accounting for | |
| |uncollectible accounts. |True False |
|9. |The direct write-off method records Bad Debt Expense in the year the specific account receivable is determined to be |