1.The direct write-off method of accounting for the impairment of receivables a.is never acceptable. b.is specifically disallowed...
Question:
1.The direct write-off method of accounting for the impairment of receivables
a.is never acceptable.
b.is specifically disallowed under IFRS.
c.is an acceptable method when the effect of not applying the allowance method would be highly immaterial.
d.usually results in the same net income as the allowance method.
2.Which of the following is the reason(s) why companies should monitor accounts receivable levels carefully?
a.To maximize costs of collection
b.To encourage prompt payment from their customers
c.To minimize the stress on working capital and related bank debt
d.B and c only
3.the journal entries related to a bank reconciliation
a.may include a credit to Bank Charges Expense for bank service charges
b.are taken from the “balance per bank” section only
c.may include a debit to Accounts Receivable for an NSF cheque
d.may include a debit to Accounts Payable for an NSF cheque
4.when preparing a bank reconciliation, a deposit credited to the company account by the bank in error is
a.deducted from the bank statement balance
b.added to the bank statement balance
c.deducted from the balance per books
d.added to the balance per books
Expert Answer:
1 Answer is specifically disallowed under IFRS Explanation Under the Direct write off method the unc... View the full answer
