FAC 1502 MOCK Comprehensive Exam
Questions
and Answers Verified Solutions Latest
Update
Question:
RECONCILIATION OF THE BANK STATEMENT.
Answer:
The process of verifying that the bank statement and the checkbook balances are in
agreement. As you reconcile the bank statement with your accounts, be aware of
outstanding checks, outstanding deposits, and any service fees the bank may have
charged.
Question:
SETTLEMENT DISCOUNT GRANTED.
Answer:
Discount is often offered to debtors in order to encourage a quick settlement of their
debts within the stated credit term.
Question:
ALLOWANCE FOR SETTLEMENT DISCOUNT GRANTED.
Answer:
The allowance for settlement discount granted will reduce the sales amount that will be
recorded.
Question:
CREDIT LOSSES : WRITITNG OFF OF CREDIT LOSSES.
Answer:
The amount of the credit losses will be debited (Dr) to the credit losses account and
credited (Cr) to the personal account and the trade receivables control account.
, Question:
CREDIT LOSSES : ALLOWANCES.
Answer:
Deducted from trade receivables. Closed off to the profit and loss account.
Question:
CREDIT LOSSES : INCREASING THE CREDIT LOSS.
Answer:
The allowance for credit losses must be deducted from the trade receivables control to
determine the amount at which debtors must take into account.
Question:
CREDIT LOSSES : DECREASING THE CREDIT LOSS.
Answer:
Debit (Dr) the allowance for credit losses account and credit (Cr) the credit losses
account.
Question:
WRITING OFF CREDIT LOSSES WHEN AN ALLOWANCE FOR CREDIT LOSSES.
Answer:
1. Credit Losses can be written off against the allowance account Dr-Allowance
Account; Cr-Debtor's Personal Account; Cr-Trade Receivables
Question:
Credit losses that occur during the year are written off against the credit losses
account
Question:
CREDIT LOSSES : RECOVERY WRITTEN OFF.
Answer:
Dr-Bank Account; Cr-Credit Losses Recovered; Added to other operating income in the
statement of profit or loss and other comprehensive income.
Questions
and Answers Verified Solutions Latest
Update
Question:
RECONCILIATION OF THE BANK STATEMENT.
Answer:
The process of verifying that the bank statement and the checkbook balances are in
agreement. As you reconcile the bank statement with your accounts, be aware of
outstanding checks, outstanding deposits, and any service fees the bank may have
charged.
Question:
SETTLEMENT DISCOUNT GRANTED.
Answer:
Discount is often offered to debtors in order to encourage a quick settlement of their
debts within the stated credit term.
Question:
ALLOWANCE FOR SETTLEMENT DISCOUNT GRANTED.
Answer:
The allowance for settlement discount granted will reduce the sales amount that will be
recorded.
Question:
CREDIT LOSSES : WRITITNG OFF OF CREDIT LOSSES.
Answer:
The amount of the credit losses will be debited (Dr) to the credit losses account and
credited (Cr) to the personal account and the trade receivables control account.
, Question:
CREDIT LOSSES : ALLOWANCES.
Answer:
Deducted from trade receivables. Closed off to the profit and loss account.
Question:
CREDIT LOSSES : INCREASING THE CREDIT LOSS.
Answer:
The allowance for credit losses must be deducted from the trade receivables control to
determine the amount at which debtors must take into account.
Question:
CREDIT LOSSES : DECREASING THE CREDIT LOSS.
Answer:
Debit (Dr) the allowance for credit losses account and credit (Cr) the credit losses
account.
Question:
WRITING OFF CREDIT LOSSES WHEN AN ALLOWANCE FOR CREDIT LOSSES.
Answer:
1. Credit Losses can be written off against the allowance account Dr-Allowance
Account; Cr-Debtor's Personal Account; Cr-Trade Receivables
Question:
Credit losses that occur during the year are written off against the credit losses
account
Question:
CREDIT LOSSES : RECOVERY WRITTEN OFF.
Answer:
Dr-Bank Account; Cr-Credit Losses Recovered; Added to other operating income in the
statement of profit or loss and other comprehensive income.
