Accounts

Receivables
Accounts receivable is____________
(liabilities/assets)

Answer: Assets
What are accounts receivable? ( accounts owned by
customers/ accounts owned by suppliers)

Answer: Accounts owned by customers

Is a sale is made to a customer on credit, the
accounted credited is ? ( Revenue/ Accounts
Receivable)

Answer: Revenue
The amount of cash expected to be collected from
accounts receivable is called? (Book value/ Net
realizable value)

Answer: Net realizable value

A provision against accounts receivable for potential
bad debts is credited to which account? (
Allowance for doubtful accounts/ Bad debt
expense)

Answer: Allowance for doubtful accounts

A provision for potential bad debts in accounts
receivable is debited to which account? (Allowance
for doubtful accounts/ Bad debt expense)

Answer: Bad debt expense

To receive a cash payment from an account
customer you debit or credit accounts receivable?
(Credit/ Debit)

Answer: Credit
Accounts receivable is used in which ratio? ( Current
Ratio/ Fixed assets turnover ratio)

Answer: Current Ratio

When an accounts receivable previously provided for
is written off, which account is debited? (Allowance
for doubtful accounts/ Bad debt expense)

Answer: Allowance for doubtful accounts

The journal entry for recording accounts receivable
is? ( Sales Dr. Accounts Payable Cr./ Accounts
Receivable Dr. Sales Cr.)

Answer: Accounts Receivable Dr. Sales Cr.

The accounts receivable that cannot be collected
because of their bankruptcy or another reason are
termed as? ( uncollectible accounts/ collectible
accounts)

Answer: Uncollectible accounts

A promissory note is written by? (a creditor in favor of
a debtor/ a debtor in favor of a creditor)

Answer: a debtor in favor of a creditor

Accounts receivable are reported in the balance
sheet as? (at net realizable value/at net credit
sales value)

Answer: At net realizable value

The main purpose of factoring accounts receivable
is? (to meet immediate cash needs/ to establish a
legal proof for future use)

Answer: To meet immediate cash needs

What type of receivable is evidenced by a formal
instrument and normally requires the payment of
interest? (A trade receivable/ A note receivable)

Answer: A note receivable

What type of receivables result from sales
transactions? (Non-trade receivables/ trade
receivables)

Answer: Trade receivables

Where do companies record accounts receivable as
an asset? (Balance Sheet/ Income statement )

Answer: Balance Sheet

Which of the following should be classified as an
"other" receivable? (Notes receivable/ Interest
receivable)

Answer: Interest receivable

When is a receivable recorded by a service
organization? (When service is provided on
account/ When the related expenses are incurred)

Answer: When service is provided on account

Sometimes when an account receivable is not paid a
business can turn to? A collection attorney/ a
collection agency (All of these)

Answer: All of these

A common payment term for accounts receivable is:
 1 year
 6 months
 60 days
 30 days

Answer: 30 days
In order to secure you a line of credit, you could use
accounts receivable as _______.
 account payables
 collateral
 cash payment

Answer: Collateral
Account receivables are categorized as current
assets assuming they are due within
 1 year
 15 days
 6 months
 30 days

Answer: 1 year
What is meant by accounts receivable?
 Money owed to a company by its debtors
 Money owed by a company to its creditors
 Money owed to a company by its employees

Answer: Money owed to a company by its debtors

Which of the following receivables would not be classified as
an "other receivable"?
 Interest receivable
 Notes receivable

Answer: Notes receivable