ACCY 201 FINAL EXAM BARTON
COMPLETE STUDY GUIDE WITH TESTED
QUESTIONS AND FULL SOLUTIONS
⩥ The most important of the fraud triangle is:.
Answer: opportunity. The workplace must provide opportunities for one
to commit fraud
⩥ trade receivables are notes and accounts receivable that result from
what kind of transaction?.
Answer: sales transactions
⩥ notes receivable is a claim for which:.
Answer: there exists a formal document (promissory note) of amount
owed
⩥ maturity date.
Answer: the date which the note is to be paid
⩥ maturity value consists of what 2 things?.
Answer: the amount of note + interest due on note
,⩥ the maker on a promissory note is the party on the note that:.
Answer: promises to pay
⩥ payee.
Answer: party to whom which the promissory note is to be paid
⩥ defaulted note.
Answer: note that has matured ans has not been paid
⩥ accounts receivable is an that represents:.
Answer: the amount a customer owes
⩥ allowance for doubtful accounts and what kind of account is it.
Answer: contra-account that reduces accounts receivable to bring it to its
net realizable value
⩥ Net Realizable value.
Answer: the amount a company expects to actually be able to receive in
cash for an asset
⩥ direct write-off method (used for tax accounting purposes) is a method
of accounting for debts that involves:.
, Answer: expensing accounts at the time the specific account is
determined to be uncollectible
⩥ allowance method.
Answer: the preferred method of accounting for debts that involves
estimating uncollectible accounts at the end of each period and matching
estimated expenses with revenue recognized during the period.
⩥ bad debt expense and where to find it recorded.
Answer: expense account used to record bad debt incurred by the
company due to credit sales. This is recorded on income statement for
both methods
⩥ Record the journal entry:
Company made sales of $750 on visa credit cards. Credit service charge
is 4%..
Answer: Cash: 720
Service Charge Expense: 30
Sales: 750
⩥ (Date) May 25 - Red Inc. Company (fv) $11,250, (term) 60 days,
(maturity date) July 20, (IR) 8%
COMPLETE STUDY GUIDE WITH TESTED
QUESTIONS AND FULL SOLUTIONS
⩥ The most important of the fraud triangle is:.
Answer: opportunity. The workplace must provide opportunities for one
to commit fraud
⩥ trade receivables are notes and accounts receivable that result from
what kind of transaction?.
Answer: sales transactions
⩥ notes receivable is a claim for which:.
Answer: there exists a formal document (promissory note) of amount
owed
⩥ maturity date.
Answer: the date which the note is to be paid
⩥ maturity value consists of what 2 things?.
Answer: the amount of note + interest due on note
,⩥ the maker on a promissory note is the party on the note that:.
Answer: promises to pay
⩥ payee.
Answer: party to whom which the promissory note is to be paid
⩥ defaulted note.
Answer: note that has matured ans has not been paid
⩥ accounts receivable is an that represents:.
Answer: the amount a customer owes
⩥ allowance for doubtful accounts and what kind of account is it.
Answer: contra-account that reduces accounts receivable to bring it to its
net realizable value
⩥ Net Realizable value.
Answer: the amount a company expects to actually be able to receive in
cash for an asset
⩥ direct write-off method (used for tax accounting purposes) is a method
of accounting for debts that involves:.
, Answer: expensing accounts at the time the specific account is
determined to be uncollectible
⩥ allowance method.
Answer: the preferred method of accounting for debts that involves
estimating uncollectible accounts at the end of each period and matching
estimated expenses with revenue recognized during the period.
⩥ bad debt expense and where to find it recorded.
Answer: expense account used to record bad debt incurred by the
company due to credit sales. This is recorded on income statement for
both methods
⩥ Record the journal entry:
Company made sales of $750 on visa credit cards. Credit service charge
is 4%..
Answer: Cash: 720
Service Charge Expense: 30
Sales: 750
⩥ (Date) May 25 - Red Inc. Company (fv) $11,250, (term) 60 days,
(maturity date) July 20, (IR) 8%
