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MGMT 200 Exam 2 Questions And Correct
Answers/ Latest Update / Already Graded
Credit sales are recorded as
A. Debit Cash, credit Deferred Revenue
B. Debit Service Revenue, credit Accounts
Receivable
C. Debit Cash, credit Service Revenue
D. Debit Accounts Receivable, credit Service
Revenue
Ans: D. Debit Accounts Receivable, credit Service
Revenue
Identify the condition(s) that must exist for a sale and
the related receivable to be recognized.
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A. Collection of cash is probable
B. The company must have collected cash from at
least one previous sale to the customer
C. Goods or services have been provided to the
customer
D. Two of the other answers are conditions that
must exist
Ans: D. Two of the other answers are conditions that
must exist
Which of the following items are classified as
receivables?
A. Tax refund claims
B. Amounts owed by customers
C. Amounts loaned and expected to be collected
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D. All of the other answers are classified as
receivables
Ans: D. All of the other answers are classified as
receivables
Identify the likely disadvantage(s) of extending credit to
customers
A. Delay or failure to collect cash
B. Lower profitability
C. Lower revenues
D. All of the other answers are disadvantages of
extending credit to customers
Ans: A. Delay or failure to collect cash
The Sales Returns account is an expense account
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A. True
B. False
Ans: B. False
Which of the following computations would be used to
compute Net Revenue?
A. Total Revenue + Accounts Receivable - Sales
Discounts - Sales Allowances
B. Net Revenue + Sales Allowances - Sales
Discounts
C. Total Revenue - Sales Discounts - Sales
Allowances
D. Net Income - Change in Accounts Receivable
Ans: C. Total Revenue - Sales Discounts - Sales
Allowances
MGMT 200 Exam 2 Questions And Correct
Answers/ Latest Update / Already Graded
Credit sales are recorded as
A. Debit Cash, credit Deferred Revenue
B. Debit Service Revenue, credit Accounts
Receivable
C. Debit Cash, credit Service Revenue
D. Debit Accounts Receivable, credit Service
Revenue
Ans: D. Debit Accounts Receivable, credit Service
Revenue
Identify the condition(s) that must exist for a sale and
the related receivable to be recognized.
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A. Collection of cash is probable
B. The company must have collected cash from at
least one previous sale to the customer
C. Goods or services have been provided to the
customer
D. Two of the other answers are conditions that
must exist
Ans: D. Two of the other answers are conditions that
must exist
Which of the following items are classified as
receivables?
A. Tax refund claims
B. Amounts owed by customers
C. Amounts loaned and expected to be collected
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D. All of the other answers are classified as
receivables
Ans: D. All of the other answers are classified as
receivables
Identify the likely disadvantage(s) of extending credit to
customers
A. Delay or failure to collect cash
B. Lower profitability
C. Lower revenues
D. All of the other answers are disadvantages of
extending credit to customers
Ans: A. Delay or failure to collect cash
The Sales Returns account is an expense account
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A. True
B. False
Ans: B. False
Which of the following computations would be used to
compute Net Revenue?
A. Total Revenue + Accounts Receivable - Sales
Discounts - Sales Allowances
B. Net Revenue + Sales Allowances - Sales
Discounts
C. Total Revenue - Sales Discounts - Sales
Allowances
D. Net Income - Change in Accounts Receivable
Ans: C. Total Revenue - Sales Discounts - Sales
Allowances
