186.On June 17, 2014, Pear, Inc. writes a 60-day, 6%, $30,000 note to settle an open account with Solar Solutions. Assuming that Pear, Inc. pays the note in full on its due date and a 360 day year is used to calculate interest, how much cash will Solar Solutions record on its statement of financial position, and on what date will the cash be received?
a.$31,800 on June 17, 2014.
b.$30,300 on August 16, 2014.
c.$31,800 on August 16, 2014.
d.$30,300 on June 17, 2014.
187.Charlie Co. lends Caroline Green Inc. $20,000 on June 1, 2014, accepting a five-month, 9% interest-bearing note. Assuming the date Charlie's statement of financial position is September 30, 2014, what amounts will Charlie record related to this note?
a.Charlie Co will not record anything related to the note since it matures on November 1, 2014.
b.Charlie Co will record interest revenue of $1,800.
c.Charlie Co will record interest revenue of $750
d.Charlie Co will record interest revenue of $600.
188.Which of the following statements is true concerning how derecognition of receivables is treated under IFRS and U.S. GAAP?
a.U.S. GAAP permits partial derecognition; IFRS does not.
b.The criteria used to derecognize a receivable under IFRS uses a combination of an approach focused on risks and rewards and loss of control.
c.The criteria used to derecognize a receivable under U.S. GAAP uses risks and rewards as the primary criterion.
d.All of these answer choices are correct.
189.Which of the following statements is true regarding accounting for receivables under IFRS and U.S. GAAP?
a.U.S. GAAP has four specifically defined categories for financial assets, which include loans and receivables.
b.U.S. GAAP accounts for short-term receivables at amortized cost, adjusted for allowances for doubtful accounts, whereas IFRS requires fair value for receivables.
c.In their current deliberations regarding accounting for financial instruments, it appears that IASB wants amortized costs for receivables, but GAAP is tending toward fair value.
d.All of these answer choices are correct.
190.Maloney Company had net credit sales during the year of ?1,800,000 and cost of goods sold of ?1,200,000. The balance in accounts receivable at the beginning of the year was ?120,000, and the end of the year it was ?180,000. What was the accounts receivable turnover ratio?
a.7.5
b.10.0
c.12.0
d.15.0
191.The average collection period for receivables is computed by dividing 365 days by
a.net credit sales.
b.average accounts receivable.
c.ending accounts receivable.
d.accounts receivable turnover ratio.
192.The financial statements of Hudson Manufacturing Company report net sales of $500,000 and accounts receivable of $50,000 and $30,000 at the beginning and end of the year, respectively. What is the receivables turnover ratio for Hudson?
a.6.3 times
b.10 times
c.16.7 times
d.12.5 times
193.The financial statements of Hudson Manufacturing Company report net sales of $480,000 and accounts receivable of $50,000 and $30,000 at the beginning and end of the year, respectively. What is the average collection period for accounts receivable in days?
a.54.3
b.30.4
c.22.8
d.38.0
194.The financial statements of Gentry Manufacturing Company report net sales of €600,000 and accounts receivable of €80,000 and €40,000 at the beginning and end of the year, respectively. What is the receivables turnover ratio for Gentry?
a.10 times
b.15 times
c.7.5 times
d.12 times
195.The financial statements of Gentry Manufacturing Company report net sales of €600,000 and accounts receivable of €80,000 and €40,000 at the beginning and end of the year, respectively. What is the average collection period for accounts receivable in days?
a.26.7 times
b.48.7 times
c.36.5 times
d.24.3 times