THEORIES

which of the following terms would not result to recognition of rate in on the books of the buyer?

• FOB seller

• FOB buyer

• FOB shipping point freight prepaid

• FOB shipping point freight collect

which cash item should be reported as current asset?

• – Segregated for payment of long-term bonds payable

• Cash set aside for the acquisition of furniture and fixtures

• Restricted compensating balance for which the related loan is short term

• restricted compensating balance for which the related loan is long-term

The petty cash found account under the Empress fund system is debited

• Only when the fund is created

• When the fund is created, and every time it is replenished

• When the fund is created, and when the fund is decreased

• When the fund is created, and the size of the fund is increased

Book credit error of current month corrected in the same month shall be

• The doctor from disbursement and deducted from ending cash balance

• Added the receipts and added to ending cash balance

• Deducted in receipts and deducted from ending cash balance

• Disbursement and deducted from receipts

which of the following concepts relates to using the allowance method in accounting for accounts receivable?

• Bad debt expense is an estimate that is based on historical and prospective information

• Bad debt expanse is based on the actual amounts, determined to be uncollectible

• Bad debt expense is an estimate that is based only on an analysis of the receivables aging

• Bad debt expense is management determination of which accounts will be sent to the attorney for collection

on October one of the current year, an entity received a one year note receivable, bearing interest at the market rate the face amount of the note receivable and the entire amount of the interest are due on September 30 of next year. The interest receivable on December 31 of the current year would consist of an amount representing.

• Three months of accrued interest income

• Nine months of accrued interest income

• 12 months of accrued interest in income

• The excess of October, one of the present value of the not receivable over its fact amount

how would the interest be collectible in installment shall be reported in the statement of financial position

• The carrying value is always reported as noncurrent asset

• The carrying value may be reported as partly current and partly noncurrent current

• The entire carrying value is always reported as current acid

• The carrying volume is not the reported in the statement of financial position

which of the following should be recorded in account receivable?

• Receivables officers representing employee loans

• Receivables from subsidiaries

• Dividends receivable

• None of these

when the allowance method of recognizing bad debts expense is used the entry to record the write off of a specific uncollectible account would decrease

• The allowance for doubtful accounts

• The profit for the period

• The net realizable value of accounts receivable

• The working capital

The present value is

• The value of a future amount

• The amount that must be invested how to produce a known future value

• Always smaller than the future value

• All of these