Chapter 5 Accounting

8 Questions

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Accounting Quizzes & Trivia

Questions and Answers
  • 1. 
    Rolling Tennis Academy held investments in trading securities valued at $45,000 Dec 31. These investments cost $38,000. What is the appropriate amount for Rolling Green to report for these investments on Dec 31 balance sheet?
    • A. 

      7000 gain

    • B. 

      38000

    • C. 

      45000

    • D. 

      Cannot be determined

  • 2. 
    • A. 

      38000

    • B. 

      45000

    • C. 

      7000 gain

    • D. 

      Cannot be determined

  • 3. 
    Accounts Receivable has a debit of $2,900 and allowance for uncollectibles of $100. A $70 accounts receivable was written off. What is the amount of net receivables after the write off?
    • A. 

      2730

    • B. 

      2830

    • C. 

      2800

    • D. 

      2870

  • 4. 
    Rosewood Corp. began 2012 with AR of $450,000. Sales for year totaled $1,600,000. Rosewood ended the year with accounts receivable of $525,000. Rosewood's bad-debt losses are minimal. How much cash did rosewood collect from customers in 2012?
    • A. 

      1,525,000

    • B. 

      2,125,000

    • C. 

      1,675,000

    • D. 

      1,600,000

  • 5. 
    Mars company received a four-month, 7%, $6,000 note receivable on March 1. The adjusting entry on March 31 will be
    • A. 

      Debit interest receivable 35

    • B. 

      Credit interest revenue 35

    • C. 

      Both a and b

    • D. 

      Credit interest revenue 420

  • 6. 
    What is the maturity value of a $40,000, 10%, six month note?
    • A. 

      42000

    • B. 

      44000

    • C. 

      38000

    • D. 

      40000

  • 7. 
    If the adjusting entry to accrue interest on a note receivable is omitted, then
    • A. 

      Liabilities are understated, net income is overstated, and OE is overstated

    • B. 

      Assets, net income, and OE are understated

    • C. 

      Assets, net income, and OE are overstated

    • D. 

      Assets are overstated, net income is understated, and OE is understated

  • 8. 
    Net sales total $547,500. Beginning and ending accounts receivable are $38,000 and $46,000. Calculate the day's sales in receivables
    • A. 

      31 days

    • B. 

      28 days

    • C. 

      25 days

    • D. 

      23 days