Practice Quiz Chapter 7

Cash consists of all of the following except:

Which of the following classifications is likely to be eliminated by the FASB?

Short-term paper with maturities of less than 3 months should be classified as

Non-trade receivables include all of the following except

If a company purchases merchandise on terms of 1/10, n/30, the cash discount available is equivalent to what effective annual rate of interest (assuming a 360-day year)

Which of the following methods of determining annual bad debt expense violates the expense recognition concept?

On December 31, 2014, Swan Company sold for $150,000 an old machine having an original cost of $170,000 and a book value of $120,000. The terms of the sale were as follows: $30,000 down payment $60,000 payable on December 31 each of the next two years The agreement of sale made no mention of interest; however, 9% would be a fair rate for this type of transaction. What should be the amount of the notes receivable net of the unamortized discount on December 31, 2014 rounded to the nearest dollar? (The present value of an ordinary annuity of 1 at 9% for 2 years is 1.75911.)

The interest rate that equates the cash paid with the amount received in the future on a zero-interest-bearing note is the:

In a transfer of receivables accounted for as a secured borrowing:

Which of the following statements is incorrect

Which of the following is a method used to generate cash from accounts receivable?