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Flashcards in Mod 12 Wrong Answers Deck (16):
0

A postdated check is not acceptable for deposit and is therefore...

Not considered cash

1

An NSF check should not be included in cash until it has...2

1 been redeposited
And
2 has cleared the bank

2

In a reconciliation, in which an entry was made for a check that has not been mailed until after the end of the year should...

Be added back in to the checking balance

3

How do you calculate under the aging method, the allowance for uncollectible accounts at year end?

Ending balance of allowance account =
Aging amount of A/R x estimated % uncollectible

4

When an A/R that was previously written off is collected, what 2 entries must be made?

1 A/R. Xxx
Allowance for uncollectible accounts Xxx

2 cash. Xxx
Accounts receivable. Xxx

5

When a company uses the allowance method to recognize uncollectible accounts expense, what is the effect at the time of collection on allowance for uncollectible accounts?

Increases

6

Assignment of accounts receivable is a financing arrangement whereby...

The owner of the receivables (assignor) obtains a loan from
The lender (assignee) by pledging the A/R as collateral

7

If financial assets are exchanged for cash or other consideration, but the transfer does not meet the criteria to be accounted for as a sale, both the transferor and transferee should accounts for the transfer as a...2

Secured borrowing and pledge of collateral

8

Accounts receivable turnover calculation

Accounts receivable turnover = net credit sales/average A/R

9

IFRS defines a provision as...

A liability that is uncertain in timing or amount

10

Under IFRS, What are provisions made for?

2) How are they recorded?

Provisions are made for estimated liabilities

2) Recorded as loss in earnings for period if outcome is probable
And measurable

11

Under IFRS, if long term debt becomes callable due to the violation of a loan covenant, the debt must be...

Reclassified as current

12

The words "reasonably possible" require...

Disclosure of the item

13

What is the journal entry for:

Write offs of allowance for uncollectible accounts?

Allowance for uncollectible accounts. Xxx
Accounts receivable. Xxx

14

What is the journal entry for:

Recoveries on allowance for uncollectible accounts?

Accounts receivable. Xxx
Allowance for uncollectible accounts. Xxx

Cash. Xxx
Accounts receivable. Xxx

15

What is the journal entry for uncollectible accounts expense?

Uncollectible accounts expense. Xxx
Allowance for uncollectible accounts. Xxx