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WorksheetsAccounting Chapter 14
Total questions: 38
Worksheet time: 29mins
Name
Class
Date
1.
Crediting the estimated value of uncollectible accounts to a contra account.
a)
Allowance Method
b)
Book Value
c)
Interest Income
d)
Maturity Date
2.
The difference between the balance of Accounts Receivable and its contra account, Allowance for Uncollectible Accounts.
a)
Payee
b)
Principal
c)
Net Realizable Value
d)
Book Value of Accounts Receivable
3.
The difference between an asset’s account balance and its related contra account.
a)
Principal
b)
Maturity Value
c)
Book Value
d)
Promissory Note
4.
The amount of accounts receivable a business expects to collect.
a)
Interest Rate
b)
Percent of Accounts Receivable Method
c)
Net Realization Value
d)
Time of a Note
5.
A method used to estimate uncollectible accounts receivable that assumes a percent of credit sales will become uncollectible.
a)
Percent of Accounts Receivable Method
b)
Percent of Sales Method
c)
Writing off an Account
d)
Maturity Value
6.
A method that uses an analysis of accounts receivable to estimate the amount that will be uncollectible.
a)
Interest Rate
b)
Percent of Accounts Receivable Method
c)
Percent of Sales Method
d)
Promissory Note
7.
Analyzing accounts receivable according to when they are due.
a)
Principal
b)
Maturity Date
c)
Book Value of Accounts Receivable
d)
Aging of Accounts Receivable
8.
Canceling the balance of a customer account because the customer does not pay.
a)
Writing off an Asset
b)
Writing off an Account
c)
Writing of a Closing
d)
Writing out a check
9.
A written and signed promise to pay a sum of money at a specified time.
a)
Promises
b)
Maturity Date
c)
Promissory Note
d)
Principal
10.
A promissory note signed by a business and given to a creditor.
a)
Note Payable
b)
Note Receivable
c)
Accounts Payable
d)
Accounts Receivable
11.
A promissory note that a business accepts from a customer.
a)
Accounts Receivable
b)
Notes Payable
c)
Notes Receivable
d)
Accounts Payable
12.
The person or business that signs a note and thus promises to make payment.
a)
Maker of the Note
b)
Maker of the Check
c)
Maker of the Pie
d)
Maker of the Deed
13.
The person or business to whom the amount of a note is payable.
a)
Payable
b)
Payor
c)
Payee
d)
Playmate
14.
The original amount of a note, sometimes referred to as the face amount.
a)
Payable
b)
Principal
c)
Maturity Value
d)
Notes Receivable
15.
The percentage of the principal that is due for the use of the funds secured by a note.
a)
Interest Rate
b)
Primary Rate
c)
Interest Accumulated
d)
Principal Rate
16.
The date on which the principal of a note is due to be repaid.
a)
Primary Date
b)
Due Date
c)
Maturity Date
d)
Interest Date
17.
The length of time from the signing date of a note to the maturity date.
a)
Time of Note
b)
Time of Maturity
c)
Time of Interest
d)
Time of Primary
18.
The amount that is due on the maturity date of a note.
a)
Immaturity Value
b)
Maturity Date
c)
Maturity Payable
d)
Maturity Value
19.
The interest earned on money loaned.
a)
Interest Income
b)
Percentage Income
c)
Interested Rate
d)
Interest Receivable
20.
A note that is not paid when due.
a)
Dishonored Value
b)
Dishonored Note
c)
Maturity Note
d)
Dishonored Receivable
21.
The allowance method of accounting for uncollectible accounts does not comply with generally accepted accounting principles.
a)
True
b)
False
22.
When a customer account is written off under the allowance method, the book value of accounts receivable decreases.
a)
True
b)
False
23.
A note provides a business with legal evidence of a debt in the event it becomes necessary to go to court to collect.
a)
True
b)
False
24.
Total assets are reduced when a business accepts a note receivable from a customer needing an extension of time to pay an account receivable.
a)
True
b)
False
25.
The book value of accounts receivable must be a reasonable unbiased estimate of the money the business expects to collect in the future.
a)
True
b)
False
26.
The accounting concept Neutrality is applied when the process of making accounting estimates is free from bias.
a)
True
b)
False
27.
The expense of an uncollectible account should be recorded in the accounting period that the account becomes uncollectible.
a)
True
b)
False
28.
The account Allowance for Uncollectible Accounts has a natural credit balance.
a)
True
b)
False
29.
A business usually knows at the end of the fiscal year which customer accounts will become uncollectible.
a)
True
b)
False
30.
The account Allowance for Uncollectible Accounts is reported on the income statement.
a)
True
b)
False
31.
The percent of each age group of an accounts receivable aging that is expected to become uncollectible is determined by generally accepted accounting principles.
a)
True
b)
False
32.
The adjusting entry for uncollectible accounts reduces the balance of the Accounts Receivable account.
a)
True
b)
False
33.
Interest rates are stated as a percentage of the principal.
a)
True
b)
False
34.
Interest Income is classified as revenue from normal operations.
a)
True
b)
False
35.
When using the allowance method, writing off an uncollectible account does not change the net realizable value of accounts receivable.
a)
True
b)
False
36.
The direct write-off method complies with generally accepted accounting principles.
a)
True
b)
False
37.
The direct write-off method matches the expense of uncollectible accounts to the revenue that is earned in the same period.
a)
True
b)
False
38.
The direct write-off method matches the expense of uncollectible accounts to the revenue that is earned in the same period.
a)
True
b)
False
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