Can you please help me with these question for week 5 ACC 291 University of Phoenix?
1. The term "receivables" refers to
o amounts due from individuals or companies.
o merchandise to be collected from individuals or companies.
o cash to be paid to debtors.
o cash to be paid to creditors.
2. Three accounting issues associated with accounts receivable are
o recognizing, valuing, and accelerating collections.
o accrual, bad debts, and accelerating collections.
o depreciating, valuing, and collecting.
o depreciating, returns, and valuing.
3. When the allowance method is used to account for uncollectible accounts, Bad Debts Expense is debited when
o a customer's account becomes past due.
o an account becomes bad and is written off.
o a sale is made.
o management estimates the amount of uncollectibles.
4. Which one of the following is not a principle of sound accounts receivable management?
o Delay cash receipts from receivables if necessary.
o Monitor collections.
o Determine a payment period.
o Determine to whom to extend credit.
5. The accounts receivable turnover is computed by dividing
o net credit sales by average receivables.
o net credit sales by ending receivables.
o total sales by average receivables.
o total sales by ending receivables.
6. The accounts receivable turnover is used to analyze
o long-term solvency.
7. The following information is provided for Sheridan Company and Concord Corporation:
(in $ millions) Sheridan Company Concord Corporation
Net income 2017 $170 $390
Net sales 2017 1625 4550
Total assets 12/31/15 1005 2280
Total assets 12/31/16 1160 3080
Total assets 12/31/17 1160 4000
What is Concord's return on assets (rounded) for 2017?
o 9.8% 12.7%
o 14.6% 11.0%
8. Which of the following is not properly classified as property, plant, and equipment?
o Land used in ordinary business operations.
o A truck held for resale by an automobile dealership.
o Land improvement, such as parking lots and fences.
o Building used as a factory.
9. A characteristic of a plant asset is that it is
o held for sale in the ordinary course of the business.
o used in the operations of a business.
o not currently used in the business but held for future use.
10. A current liability is a debt that can reasonably be expected to be paid
o between 6 months and 18 months.
o within one year, or the operating cycle, whichever is longer.
o out of currently recognized revenues.
o out of cash currently on hand.
11. Which of the following most likely would be classified as a current liability?
o Bonds payable in 5 years
o Dividends payable
o Three-year notes payable
o Mortgage payable as a single payment in 10 years
12. The 2017 financial statements of Pharoah Company contain the following selected data (in millions).
Current assets $99
Total assets 157
Current liabilities 47
Total liabilities 80
Interest expense 7
Income taxes 11
Net income 19
The debt to assets ratio (rounded) is
o 5.2 times.
13. In a recent year Monty Corp. had net income of $152000, interest expense of $28700, and income tax expense of $41500. What was Monty Corp.'s times interest earned (rounded) for the year?
14. If bonds are issued at a discount, it means that the
o market interest rate is lower than the contractual interest rate.
o market interest rate is higher than the contractual interest rate.
o bondholder will receive effectively less interest than the contractual rate of interest.
o financial strength of the issuer is suspect.
15. If bonds are issued at a premium, the stated interest rate is
o higher than the market rate of interest
o adjusted to a higher rate of interest.
o lower than the market rate of interest.
o too low to attract investors.
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