Accounting Concepts and Practices Worksheet

Classifying assets as current and noncurrent: Which of the following is a current asset?

• PPE (fixed assets)

• Accounts receivable

• Investments

• Intangibles

Classifying assets as current and noncurrent: Which account is the first to show up on the balance sheet and is considered the most liquid current asset?

• Cash

• Inventory

• Prepaid Expenses

• Accounts Receivable

Classifying assets as current and noncurrent: Which of the following is NOT a current asset?

• Inventory

• Prepaids

• Short term investments

• PPE (fixed assets)

List the three types of noncurrent (long term) assets mentioned in the worksheet.

• PPE (fixed assets), Investments, Intangibles

• Cash, Receivables, Inventory

• Accounts Payable, Notes Payable, Accrued Expenses

• Prepaid Expenses, Supplies, Short-term Investments

Methods of accounting for uncollectible receivables: What are the two methods mentioned for accounting for uncollectible receivables?

• Direct write off and Allowance

• Accrual and Cash

• FIFO and LIFO

• Depreciation and Amortization

In the direct write off method, what is the journal entry for recording bad debt expense?

• Debit: Bad debt expense, Credit: A/R

• Debit: A/R, Credit: Bad debt expense

• Debit: Allowance for doubtful accounts, Credit: A/R

• Debit: Bad debt expense, Credit: Cash

In the allowance method, what is the journal entry for recording bad debt expense?

In the allowance method, what is the journal entry for writing off accounts receivable?

• Debit: Allowance, Credit: Accounts Receivable

• Debit: Accounts Receivable, Credit: Allowance

• Debit: Bad Debt Expense, Credit: Accounts Receivable

• Debit: Cash, Credit: Accounts Receivable

What is the formula for calculating interest amount?

• Face(principal) x Interest Rate x Term(of note) = Interest Amount

• Face(principal) + Interest Rate + Term(of note) = Interest Amount

• Face(principal) x Interest Rate ÷ Term(of note) = Interest Amount

• Face(principal) - Interest Rate x Term(of note) = Interest Amount

What is the cost basis for fixed assets?