Emoni Accounting EXam

Front

What type of account is the "Allowance for Uncollectible Accounts" classified as in financial accounting?

Back

Contra Asset

Front

What is a potential benefit of increasing inventory turnover for a business?

Back

Increase profit

Front

In the context of a promissory note, who is referred to as the "maker"?

Back

The borrower

Front

In a financial transaction, who is referred to as the "payee"?

Back

The lender, the party that extends credit.

Front

When is the aging of accounts receivable analysis typically performed?

Back

At the end of each fiscal year (12/31)

Front

When is the percentage of sales approach typically applied in accounting? A) Annually on December 31, B) At the end of each month, C) At the end of each quarter (3/31, 6/30, 9/30), D) Biannually

Back

At the end of each quarter (3/31, 6/30, 9/30)

Front

What does accounts receivable represent in a corporation's financial statements? A) The cash available for immediate expenses B) The amount of money a corporation is entitled to receive from customers from sales or services on credit C) The total liabilities of the corporation D) The inventory held by the corporation

Back

The amount of money a corporation is entitled to receive from customers from sales or services on credit.

Front

How are receivables classified in a corporation's financial statements? A) Liability (balance sheet) B) Expense (income statement) C) Asset (balance sheet) D) Equity (balance sheet)

Back

Asset (balance sheet)

Front

When is an account typically considered "past due"? A) After 15 days, B) After 30 days, C) After 60 days, D) After 90 days

Back

After 30 days

Front

What does the term "maturity value" refer to in finance?

Back

Principal + Interest