41.The balance of Allowance for Doubtful Accounts is added to Accounts Receivable on the balance sheet.
a.True
b.False
42.Receivables that are expected to be collected in cash in eighteen months or less are reported in the current assetsection of the balance sheet.
a.True
b.False
43.The accounts receivables turnover ratio is computed by dividing total gross sales by the average net receivablesduring the year.
a.True
b.False
44.The accounts receivable turnover measures the length of time in days it takes to collect a receivable.
a.True
b.False
45.The number of days’ sales in receivables is an estimate of the length of time the accounts receivables have beenoutstanding.
a.True
b.False
46.A note receivable due in 18 months is listed on the balance sheet under the caption
a.long-term liabilities
b.fixed assets
c.current assets
d.investments
47.The receivable that is usually evidenced by a formal, written instrument of credit is a(n)
a.trade receivable
b.note receivable
c.accounts receivable
d.income tax receivable
48.Which of the following receivables would
notbe classified as an "other receivable”?
a.advance to an employee
b.interest receivable
c.refundable income tax
d.notes receivable
49.Other receivables includes all of the following
except
a.notes receivable
b.receivables from employees
c.taxes receivable
d.interest receivable
50.Notes or accounts receivables that result from sales transactions are often called
a.nontrade receivables
b.trade receivables
c.merchandise receivables
d.sales receivables