ACCY 200 Chapter 5; Questions & Answers
100% Verified
The allowance for bad debts is ____ to/from accounts receivable Correct answer-
subtracted from
"Net accounts receivable" represents the balance of an asset account less the balance of a ____
Correct answer-contra asset account
"Net accounts receivable" is the ____ value reported on the balance sheet Correct
answer-net realizable
the allowance for bad debts represents the estimated amount of accounts receivable that will
be ____ in the future Correct answer-written off
NSF (not sufficient funds) checks are ____ to/from the company's book balance Correct
answer-subtracted from
collateral Correct answer-identification of security pledged by the borrower to support
the loan
service charges are ____ to/from the company's book balance Correct answer-subtracted
from
the cash amount reported as an asset on the balance sheet includes which:
, ACCY 200 Chapter 5; Questions & Answers
100% Verified
- undeposited receipts
- demand deposit balances
- petty cash fund balances
- expected litigation settlements Correct answer-- undeposited receipts
- demand deposit balances
- petty cash fund balances
how is an expected litigation settlement reported on the balance sheet Correct answer-
reported as a receivable if it was probably that the amounts would be received and the
amounts were reasonably estimable
the impact on the financial statements of a write-off of an account receivable includes:
- an increase to total liabilities
- a decrease to a contra asset account
- a decrease to an asset account
- an increase to expenses Correct answer-- a decrease to a contra asset account
- a decrease to an asset account
Assume that the balances in Accounts Receivable and the Allowance for Bad Debts accounts
were $50,000 and $3,000, respectively, before a write-off entry for $1,000 was recorded. how
100% Verified
The allowance for bad debts is ____ to/from accounts receivable Correct answer-
subtracted from
"Net accounts receivable" represents the balance of an asset account less the balance of a ____
Correct answer-contra asset account
"Net accounts receivable" is the ____ value reported on the balance sheet Correct
answer-net realizable
the allowance for bad debts represents the estimated amount of accounts receivable that will
be ____ in the future Correct answer-written off
NSF (not sufficient funds) checks are ____ to/from the company's book balance Correct
answer-subtracted from
collateral Correct answer-identification of security pledged by the borrower to support
the loan
service charges are ____ to/from the company's book balance Correct answer-subtracted
from
the cash amount reported as an asset on the balance sheet includes which:
, ACCY 200 Chapter 5; Questions & Answers
100% Verified
- undeposited receipts
- demand deposit balances
- petty cash fund balances
- expected litigation settlements Correct answer-- undeposited receipts
- demand deposit balances
- petty cash fund balances
how is an expected litigation settlement reported on the balance sheet Correct answer-
reported as a receivable if it was probably that the amounts would be received and the
amounts were reasonably estimable
the impact on the financial statements of a write-off of an account receivable includes:
- an increase to total liabilities
- a decrease to a contra asset account
- a decrease to an asset account
- an increase to expenses Correct answer-- a decrease to a contra asset account
- a decrease to an asset account
Assume that the balances in Accounts Receivable and the Allowance for Bad Debts accounts
were $50,000 and $3,000, respectively, before a write-off entry for $1,000 was recorded. how
