Chapter 6,7 and 8.

If a 10% note receivable for $10,000 is created on January 1, 2015, and it has a maturity date of December 31, 2018.

• Interest Revenue of $1,000 will be recorded in 2015

• The note receivable will be classified as a current asset

• No interest revenue will be recovered in 2015

The Income Statement is composed of what?

• Assets, Liabilities, Stockholders Equity (Equity)

• Revenues, and Expenses

• Retained Earnings, Dividends, and Net income

• The Balance Sheet

  When using the allowance method, as Bad Debt Expense is recorded

•     Total assets increase and stockholders’ equity decreases

• Total liabilities increase and stockholders’ equity decreases

• Total assets remain the same and stockholder’s equity remains the same

• Total assets decrease and stockholders’ equity decreases

What type of account is the Allowance of Doubtful Accounts?

• Contra-Asset

• Asset

• Contra-Revenue

• Liability

True or False: Total Assets is not increased or decreased after a write off and a recovery.

• True

• False

The Bad Debt Expense has a normal Debit Balance

• True

• False

is the direct write off method accepted under GAAP?

• Yes, it is accepted

• no, it is NOT accepted

Deposits recorded by the company but not yet recorded by its bank.

• Outstanding checks

• NSF

• EFT

• Deposits In Transit

what does NSF stand for?

• Non-Standard Facts

• Non-Sufficient Funds

• Negation of Strategic Fabrication

• Not Enough Funds

which of these should be capitalized when purchasing equipment?

• Sales Tax

• Installation Cost

• Transportation Cost

• Possibility of revenue.