Quiz
Payment for goods and services: cash and accounts receivable
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Questions in this quiz (10)
1[blank_start]The maker of a note[blank_end] is the person or firm making the promise to pay.
- AThe maker of a note
2[blank_start]Segregation of duties[blank_end] means that the person who has physical custody of an asset is not the same person who has record-keeping responsibilities for that asset.
- ASegregation of duties
3[blank_start]Accounts receivable[blank_end] is a current asset that arises from sales on credit; it is also the total amount customers owe the firm.
- AAccounts receivable
4An [blank_start]outstanding check[blank_end] is a check the firm has written but that has not yet cleared the bank. That is, the check has not been presented to the bank for payment yet.
- Aoutstanding check
5The [blank_start]allowance method[blank_end] is a method of accounting for bad debts in which the amount of the uncollectible accounts is estimated at the end of end accounting period.
- Aallowance method
6A [blank_start]bank reconciliation[blank_end] is a comparison between the cash balance in the firm´s accounting records and the cash balance on the bank statement to identify the reasons for any differences.
- Abank reconciliation
7Net realizable value is a bank deposit the firm has made but is not included on the month´s bank statement because the deposit did not reach the bank´s recorded-keeping department in time to be included on the current bank statement.
- ATrue
- BFalse
8The allowance for uncollectible accounts is a contra-asset account, the balance of which represents the total amount the firm believes it will not collect from its total accounts receivable.
- ATrue
- BFalse
9Bad debts are highly liquid investments with a maturity of three months or less that a firm can easily convert into a known amount of cash.
- ATrue
- BFalse
10[blank_start]A bank statement[blank_end] is a summary of the activity in a bank account sent each month to the account holder.
- AA bank statement
- BNet realizable
- CAn aging schedule
- DA promissory note
Information
- Description
- Vocabulary # 4
- Author
- FELIPE GUARDIA
- Language
- Español
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- 62
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- Rating
- 5.0 out of 5 · 1 rating Rate this quiz