51.Which statement is
nottrue?
a.Current assets are normally reported in order of their liquidity.
b.Disclosures related to receivables are reported on the financial statement notes.
c.Cash and cash equivalents are the first items reported under current assets.
d.All receivables that are expected to be realized in cash beyond 265 days are reported in the noncurrent
52.The term "receivables" includes all
a.money claims against other entities
b.merchandise to be collected from individuals or companies
c.cash to be paid to creditors
d.cash to be paid to debtors
53.If collection of another receivable is expected beyond one year, it is classified as a(n)
a.other receivable under noncurrent assets
b.other receivable under current assets
c.investment under current assets
d.investment under noncurrent assets
54.When does an account become uncollectible?
a.when accounts receivable is converted into notes receivable
b.when a discount is availed on notes receivable
c.there is no general rule for when an account becomes uncollectible
d.at the end of the fiscal year
55.The two methods of accounting for uncollectible receivables are the allowance method and the
a.equity method
b.direct write-off method
c.interest method
d.cost method
56.The direct write-off method of accounting for uncollectible accounts
a.emphasizes balance sheet relationships
b.is often used by small companies and companies with few receivables
c.emphasizes cash realizable value
d.emphasizes the matching of expenses with revenues
57.Under the direct write-off method of accounting for uncollectible accounts, Bad Debts Expense is debited
a.at the end of each accounting period
b.when a credit sale is past due
c.whenever a predetermined amount of credit sales have been made
d.when an account is determined to be worthless
58.An alternative name for bad debt Expense is a(n)
a.collection expense
b.credit loss expense
c.uncollectible accounts expense
d.deadbeat expense
59.Two methods of accounting for uncollectible accounts are the
a.direct write-off method and the allowance method
b.allowance method and the accrual method
c.allowance method and the net realizable method
d.direct write-off method and the accrual method
60.The operating expense recorded from uncollectible receivables can be called all of the following
except
a.accounts receivable
b.bad debt expense
c.doubtful accounts expense
d.uncollectible accounts expense