CHAPTER 9 ACCOUNTING FOR RECEIVABLES SUMMARY OF QUESTIONS BY STUDY OBJECTIVES AND BLOOM’S TAXONOMY Item SO BT Item SO BT Item SO BT Item SO BT 5 5 5 5 9 9 1 3 K AP K K K K K K 113. 114. 115. 116. 117. 118. 119. 120. 121. 122. 123. 124. 125. 126. 127. 128. 129. 130. 131. 132. 133. 134. 135. 136. 137. 4 4 5 5 5 5 5 5 5 5 5 5 5 5 5 5 6 6 6 6 6 6 7 7 8 K K K AP AP AP AP K K K C
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was taken from the production and account ing records for Casuccio Manufacturing‚ Inc. Unaudited 20X9 Audited 20X8 Audited 20X7 Operating Data Capacity in Units 450‚000 450‚000 450‚000 Production in Units 450‚000 400‚000 300‚000 Inventory in Units 32‚000 28‚000 21‚000 Financial Data ($000) Total Revenues 35‚200 27‚500 21‚200 Total Assets 23‚000 19‚500 15‚700 Accounts Receivable‚ Net 5‚900 4‚300 3‚900 Bad Debt Expense 175 135 105 Accounts Receivable Written Off 165 125 100 Required
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At the time of a credit sale‚ a company would record an increase in assets and an increase in revenues. True False 3. A sale on account is recorded as a debit to revenue and a credit to accounts receivable. True False 4. Accounts receivable represent the amount of cash owed to the company by its customers from the sale of products or services on account. True False 5. Trade discounts represent a discount offered to the purchasers for quick payment. True False 6. When a company
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process of confirming receivables follow: Step-1. Obtain Aged Schedule of Accounts Receivable The auditor should obtain an aged schedule of accounts receivable as of the confirmation date. He or she should apply the following procedures to this schedule: Determine that totals are correct. Compare all or a selected sample of account balances with the account balances in the accounts receivable subsidiary ledger. Investigate credit balances. Step-2. Select Accounts for Confirmation Auditors
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a. What is account receivable? Credit sales‚ sales on account b. How do accounts receivable differ from notes receivable? Notes Receivable arises when the seller asks for a note to replace an Accounts Receivable when the customer requests additional time to pay a past-due account. A promissory note is a written promise to pay a specific amount of money‚ usually including interest‚ at a future date. c. What is a contra asset? An account which offsets another account. A contra-asset account
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SCAN DETAILED LIST OF ACCOUNTS RECEIVABLE (4). 4. Scan the detailed list of trade accounts receivable and investigate significant unusual items (e.g.‚ credit balances and zero balances). Done by Date ..../../.. GUIDANCE: When scanning the detailed list of accounts receivable (aged by customer‚ if practicable)‚ the auditor should be
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Determine the cost of long-term operational assets. Explain how different depreciation methods affect financial statements. Determine how gains and losses on disposals of long-term operational assets affect financial statements. Explain how expense recognition for natural resources (depletion) affects financial statements. Explain how expense recognition for intangible assets (amortization) affects financial statements. Understand how expense recognition choices and industry characteristics
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Literature Accounts receivable describes the amount of cash‚ goods‚ or services owed to a business by a client or customer. The manner‚ in which the collection of outstanding bills is handled‚ especially in a small business‚ can be a pivotal factor in determining a company’s profitability. Getting the sale is the first step of the cash flow process‚ but all the sales in the world are of little use if monetary compensation is not forthcoming. Moreover‚ when a business has trouble collecting what it is
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On September 1‚ the balance of the Accounts Receivable control account in the general ledger of Montgomery Company was $10‚960. The customers’ subsidiary ledger contained account balances as follows: Hurley $1‚440‚ Andino $2‚640‚ Fowler $2‚060 and Sogard $4‚820. At the end of September‚ the various journals contained the following information. Sales journal: Sales to Sogard $800‚ to Hurley $1‚260‚ to Giambi $1‚330‚ and to Fowler $1‚600. Cash receipts journal: Cash received from Fowler $1‚310‚ from
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Internal Revenue Service | | | b. U.S. Congress | | | c. Governmental Accounting Standards Board | | | d. Financial Accounting Standards Board | | Correct Marks for this submission: 5/5. Question 5 Marks: 5 The left side of a T-account is known as the: Choose one answer. | a. Debit Side | | | b. Credit side | | | c. Claims side | | | d. Equity side | | Correct Marks for this submission: 5/5. 1 Marks: 5 Product costs are matched against sales revenue
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