問題一覧
1
When a specific customer’s account receivable is written off as uncollectible, what will be the effect
on net income under each of the following methods of recognizing bad debt expense?
(a) Allowance: None Direct write-off: Decrease
(b) Allowance: Decrease Direct write-off: None
(c) Allowance: Decrease Direct write-off: Decrease
(d) Allowance: None Direct write-off: None
A
2
A company, which has an adequate amount in its Allowance for Doubtful Accounts, writes off as
uncollectible an accounts receivable from a bankrupt customer. This action will:
(a) Have no effect on total current assets
(b) Reduce the amount of equity
(c) Reduce net income for the period
(d) Reduce total current assets
A
3
P When the allowance method is used, the entry which is appropriate when a particular account is
written off as uncollectible should include a:
(a) Credit to sales revenue
(b) Credit to bad debt expense
(c) Debit to accounts receivable
(d) Debit to allowance for doubtful accounts
D
4
From the standpoint of accounting theory, the allowance method of accounting for uncollectible
accounts expense is much better than the direct write-off method because:
(a) Uncollectible accounts are merely charged to expense in the period when such receivables are
determined to be collectible
(b) Expenses are unmatched with related revenues
(c) The receivables are not stated at their provable realizable value
(d) Uncollectible accounts are recorded as expenses in the period in which the individual accounts
are determined to be worthless
D
5
When an accounts receivable aging schedule is prepared, a series of computations is made to
determine estimated uncollectible accounts. The resulting amount from this aging schedule:
(a) When added to the total accounts written off during the year is the desired credit balance of
the allowance for doubtful accounts at year-end
(b) Is the amount of doubtful accounts expense for the year
(c) Is the amount that should be added to the beginning allowance for doubtful accounts to get
The doubtful accounts expense for the year
(d) Is the amount of desired credit balance of the allowance for doubtful accounts to be reported
at year end
D
6
A method of estimating bad debts that focuses on the income statement rather than the statement
of financial position is the allowance method based on:
(a) Direct write-off method
(b) Credit sales
(c) Aging the trade accounts receivable
(d) The balance in the trade accounts receivable
B
7
Which method does not properly match expense and revenue?
(a) Charging bad debts as accounts are written off as uncollectible
(b) Charging bad debts with a percentage of sales under the allowance method
(c) Charging bad debts using aging of accounts receivable under the allowance method
(d) Charging bad debts using a percentage of accounts receivable under the allowance method
D
8
Which of the following is a generally accepted method of determining the amount of the adjustment
to bad debt expense?
(a) A percentage of sales adjusted for the balance in the allowance
(b) A percentage of accounts receivable not adjusted for the balance in the allowance
(c) An amount derived from aging accounts receivable adjusted for the balance in the allowance
(d) An amount derived from aging accounts receivable not adjusted for the balance in the allowance
A
9
Which of the following concepts relates to the allowance method in accounting for accounts receivable?
(a) Bad debt expense is based on the actual amount determined to be uncollectible
(b) Bad debt expense is an estimate that is based only on an aging of accounts receivable
(c) Bad debt expense is an estimate that is based on historical and prospective information
(d) Bad debt expense is management determination of which accounts will be sent to the attorney
for collection
C
10
Which of the following is an advantage of using the net price method for recording cash discounts
on credit sales?
(a) It properly reflects current periods sales revenue
(b) It simplifies recording of sales returns and allowances
(c) It eases communication with customers about their balances
(d) It requires less record-keeping efforts than the gross method
A
11
If a company employs the gross method of recording receivables from customers, then sales discounts
taken should be reported as:
(a) A deduction from sales in the income statement
(b) An item of other expense in the income statement
(c) Sales discounts forfeited in the cost of sales section of the income statement
(d) A deduction from accounts receivable in determining the net realizable value
A
12
Accounts receivable are classified as current assets:
(a) Only if convertible into cash beyond one year
(b) Only if convertible into cash within 60 days or sooner
(c) Only if the allowance method is used to estimate the uncollectible accounts
(d) Whenever accounts receivable arise from “normal” sales to customers, regardless of the credit
terms
D
13
Accounts receivable usually appear in the balance sheet as:
(a) As current assets, combined with cash and cash equivalents
(b) As current assets, immediately after cash and cash equivalents
(c) Only if the balance sheet method of estimating uncollectible accounts is used
(d) As either current assets or noncurrent assets, depending on whether the allowance method or
the direct write-off method is used to account for uncollectible accounts
B
14
Which of the following statement is true in relation to presentation of receivables in statement of
financial position?
(a) Trade receivables and nontrade receivables are shown separately
(b) Nontrade receivables are presented as noncurrent assets
(c) Trade account receivables and trade notes receivable shall be presented separately
(d) Trade receivable and nontrade receivable which are currently collectible shall be presented as
one line item called “trade and other receivables”
D
15
Bad debt expense represents:
(a) That portion of this period’s sales on account not likely to be collected
(b) That portion of the balance in accounts receivable at the end of the period not likely to be
collected
(c) The amount of accounts receivable written off as uncollectible during the current period
(d) The total of those accounts receivable written off during the period and the amount judged
to be uncollectible at the beginning of the period
A
16
When individual customer’s accounts have credit balances of material amounts, these amounts:
(a) Should be omitted from the balance sheet
(b) Must be reported separately in the liability section of the balance sheet
(c) May be shown as “credit balances of customers accounts” in the current assets section
(d) May be deducted from the debit balance in other customers accounts in the asset section
B
17
In reporting accounts receivable at the balance sheet:
(a) An aging schedule is used to determine which accounts should be written off prior to preparing
the balance sheet totals
(b) The allowance for uncollectible accounts, freight charges, sales discounts, and sales returns
and allowances are deducted from accounts receivable
(c) The direct write-off method is used to determine the appropriate balance in the allowance for
uncollectible accounts at year-end
(d) Only those accounts likely to be collected before the beginning of the next period should be
included in the accounts receivable
B
18
Receivables denominated in a foreign currency should be:
(a) Translated to local currency using the exchange rate at the time the receivable arise
(b) Shown at face value of the foreign currency
(c) Translated to local currency using the exchange rate at the balance sheet date
(d) Translated to local currency using the exchange rate when the balance sheet is issued
C
19
Assuming that the ideal measure of short-term receivable in the balance sheet is the discounted
value of the cash to be received in the future, failure to follow this practice usually does not make
the balance sheet misleading because:
(a) Most short-term receivables are not interest-bearing
(b) The allowance for uncollectible accounts includes a discount element
(c) The amount of the discount is not material
(d) Most receivables can be sold to a bank or factor
C
20
Subsequent to initial recognition, accounts receivable should be carried at:
(a) Face value
(b) Net realizable value
(c) Maturity value
(d) Present value
B
21
Accounts receivable shall be recognized initially at:
(a) Face value
(b) Discounted value
(c) Maturity value
(d) Current value
A
問題一覧
1
When a specific customer’s account receivable is written off as uncollectible, what will be the effect
on net income under each of the following methods of recognizing bad debt expense?
(a) Allowance: None Direct write-off: Decrease
(b) Allowance: Decrease Direct write-off: None
(c) Allowance: Decrease Direct write-off: Decrease
(d) Allowance: None Direct write-off: None
A
2
A company, which has an adequate amount in its Allowance for Doubtful Accounts, writes off as
uncollectible an accounts receivable from a bankrupt customer. This action will:
(a) Have no effect on total current assets
(b) Reduce the amount of equity
(c) Reduce net income for the period
(d) Reduce total current assets
A
3
P When the allowance method is used, the entry which is appropriate when a particular account is
written off as uncollectible should include a:
(a) Credit to sales revenue
(b) Credit to bad debt expense
(c) Debit to accounts receivable
(d) Debit to allowance for doubtful accounts
D
4
From the standpoint of accounting theory, the allowance method of accounting for uncollectible
accounts expense is much better than the direct write-off method because:
(a) Uncollectible accounts are merely charged to expense in the period when such receivables are
determined to be collectible
(b) Expenses are unmatched with related revenues
(c) The receivables are not stated at their provable realizable value
(d) Uncollectible accounts are recorded as expenses in the period in which the individual accounts
are determined to be worthless
D
5
When an accounts receivable aging schedule is prepared, a series of computations is made to
determine estimated uncollectible accounts. The resulting amount from this aging schedule:
(a) When added to the total accounts written off during the year is the desired credit balance of
the allowance for doubtful accounts at year-end
(b) Is the amount of doubtful accounts expense for the year
(c) Is the amount that should be added to the beginning allowance for doubtful accounts to get
The doubtful accounts expense for the year
(d) Is the amount of desired credit balance of the allowance for doubtful accounts to be reported
at year end
D
6
A method of estimating bad debts that focuses on the income statement rather than the statement
of financial position is the allowance method based on:
(a) Direct write-off method
(b) Credit sales
(c) Aging the trade accounts receivable
(d) The balance in the trade accounts receivable
B
7
Which method does not properly match expense and revenue?
(a) Charging bad debts as accounts are written off as uncollectible
(b) Charging bad debts with a percentage of sales under the allowance method
(c) Charging bad debts using aging of accounts receivable under the allowance method
(d) Charging bad debts using a percentage of accounts receivable under the allowance method
D
8
Which of the following is a generally accepted method of determining the amount of the adjustment
to bad debt expense?
(a) A percentage of sales adjusted for the balance in the allowance
(b) A percentage of accounts receivable not adjusted for the balance in the allowance
(c) An amount derived from aging accounts receivable adjusted for the balance in the allowance
(d) An amount derived from aging accounts receivable not adjusted for the balance in the allowance
A
9
Which of the following concepts relates to the allowance method in accounting for accounts receivable?
(a) Bad debt expense is based on the actual amount determined to be uncollectible
(b) Bad debt expense is an estimate that is based only on an aging of accounts receivable
(c) Bad debt expense is an estimate that is based on historical and prospective information
(d) Bad debt expense is management determination of which accounts will be sent to the attorney
for collection
C
10
Which of the following is an advantage of using the net price method for recording cash discounts
on credit sales?
(a) It properly reflects current periods sales revenue
(b) It simplifies recording of sales returns and allowances
(c) It eases communication with customers about their balances
(d) It requires less record-keeping efforts than the gross method
A
11
If a company employs the gross method of recording receivables from customers, then sales discounts
taken should be reported as:
(a) A deduction from sales in the income statement
(b) An item of other expense in the income statement
(c) Sales discounts forfeited in the cost of sales section of the income statement
(d) A deduction from accounts receivable in determining the net realizable value
A
12
Accounts receivable are classified as current assets:
(a) Only if convertible into cash beyond one year
(b) Only if convertible into cash within 60 days or sooner
(c) Only if the allowance method is used to estimate the uncollectible accounts
(d) Whenever accounts receivable arise from “normal” sales to customers, regardless of the credit
terms
D
13
Accounts receivable usually appear in the balance sheet as:
(a) As current assets, combined with cash and cash equivalents
(b) As current assets, immediately after cash and cash equivalents
(c) Only if the balance sheet method of estimating uncollectible accounts is used
(d) As either current assets or noncurrent assets, depending on whether the allowance method or
the direct write-off method is used to account for uncollectible accounts
B
14
Which of the following statement is true in relation to presentation of receivables in statement of
financial position?
(a) Trade receivables and nontrade receivables are shown separately
(b) Nontrade receivables are presented as noncurrent assets
(c) Trade account receivables and trade notes receivable shall be presented separately
(d) Trade receivable and nontrade receivable which are currently collectible shall be presented as
one line item called “trade and other receivables”
D
15
Bad debt expense represents:
(a) That portion of this period’s sales on account not likely to be collected
(b) That portion of the balance in accounts receivable at the end of the period not likely to be
collected
(c) The amount of accounts receivable written off as uncollectible during the current period
(d) The total of those accounts receivable written off during the period and the amount judged
to be uncollectible at the beginning of the period
A
16
When individual customer’s accounts have credit balances of material amounts, these amounts:
(a) Should be omitted from the balance sheet
(b) Must be reported separately in the liability section of the balance sheet
(c) May be shown as “credit balances of customers accounts” in the current assets section
(d) May be deducted from the debit balance in other customers accounts in the asset section
B
17
In reporting accounts receivable at the balance sheet:
(a) An aging schedule is used to determine which accounts should be written off prior to preparing
the balance sheet totals
(b) The allowance for uncollectible accounts, freight charges, sales discounts, and sales returns
and allowances are deducted from accounts receivable
(c) The direct write-off method is used to determine the appropriate balance in the allowance for
uncollectible accounts at year-end
(d) Only those accounts likely to be collected before the beginning of the next period should be
included in the accounts receivable
B
18
Receivables denominated in a foreign currency should be:
(a) Translated to local currency using the exchange rate at the time the receivable arise
(b) Shown at face value of the foreign currency
(c) Translated to local currency using the exchange rate at the balance sheet date
(d) Translated to local currency using the exchange rate when the balance sheet is issued
C
19
Assuming that the ideal measure of short-term receivable in the balance sheet is the discounted
value of the cash to be received in the future, failure to follow this practice usually does not make
the balance sheet misleading because:
(a) Most short-term receivables are not interest-bearing
(b) The allowance for uncollectible accounts includes a discount element
(c) The amount of the discount is not material
(d) Most receivables can be sold to a bank or factor
C
20
Subsequent to initial recognition, accounts receivable should be carried at:
(a) Face value
(b) Net realizable value
(c) Maturity value
(d) Present value
B
21
Accounts receivable shall be recognized initially at:
(a) Face value
(b) Discounted value
(c) Maturity value
(d) Current value
A