Multiple Choice Questions: 1. The two methods of accounting for uncollectible receivables are the allowance method and
Question:
Multiple Choice Questions:
1. The two methods of accounting for uncollectible receivables are the allowance method and the
a. equity method
b. direct-write off method
c. cost method
d. interest method
2. Notes receivable may be issued
a. when assets are purchased
b. to a creditors who has probelms paying within account receivable terms.
c. when borrowing money
d. all of the above
3. The interest charged by a bank for a $100,000 note at 9% for 90 days is
a. $9,000
b. $2,250
c. $750
d. $1,000
4. The Sarbanes-Oxley Act requires that all major U.S. corporations
a. Maintain a monthly bank reconcilliation report.
b. maintain a petty cash fund
c. maintain an adequate system of internal control
d. must report filings to the national commission of Fradulentactvity
Horngrens Accounting
ISBN: 978-0133855371
10th Canadian edition Volume 1
Authors: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo-Ann L. Johnston, Peter R. Norwood