COB 241: Ch 7 Exam Questions With 100% Answers

COB 241: Ch 7 Exam Questions With 100% Answers Journal entry to recognize accrued interest includes a: - ANSWER- credit to Interest Revenue debit to Interest Receivable When a company recognizes uncollectible accounts expense, - ANSWER- cash flow from operating activities is not affected Which of the following statements is affected when a company writes-off an uncollectible account receivable - ANSWER- balance sheet when a company recognizes a write-off of an uncollectible account, the balance of the: - ANSWER- Allowance for Doubtful Accounts decreases Accounts Receivable decreases When a company reinstates an account receivable that had previously been written-off: - ANSWER- cash flow from operating activities is NOT AFFECTED net income is NOT AFFECTED When a company reinstates an account receivable that had previously been written-off, the balance in the - ANSWER- Accounts Receivable INCREASES Allowances for doubtful accounts INCREASES When a company writes-off an uncollectible account under the allowance method, the amount of: - ANSWER- total assets is NOT AFFECTED cash flow from operating activities is NOT AFFECTED net income is not affected When an uncollectible account is written-off, the balance in the Accounts Receivable account ... and the balance in the Allowance for Doubtful Accounts account ... - ANSWER- decreases decreases the net realizable value of accounts receivable is - ANSWER- an estimate that represents the amount of cash a company expects to collect from its accounts receivable the ending balance of accounts receivable less an allowance representing the amount of accounts a company expects to be uncollectible when uncollectible accounts expense is recognized, this event causes the balance in the - ANSWER- uncollectible accounts expense INCREASES allowance for doubtful accounts INCREASES when a company recognizes a write-off an uncollectible account, the balance in the - ANSWER- Allowance for Doubtful Accounts DECREASES Accounts Receivable DECREASES Which of the following represents the formula for calculating the net realizable value of receivables - ANSWER- Accounts receivable Less: Allowance for doubtful accounts = Net realizable value of receivable