You are watching: Which statement is true about reporting receivables on the balance sheet?
Correct! The perchild who has actually custody of assets have to not perdevelop the document maintaining for the assetsThe perboy who has actually custody of assets should likewise perform the record keeping for the assets.
When a note receivable is paid on time and also no interest has actually been previously accrued, what will the journal enattempt to document the transaction contain? Two debits and also one credit One delittle and also one credit Namong the answer options are correct
The entry to document this transaction will certainly have actually a delittle to Cash, a crmodify to Notes Receivable and a crmodify to Interest Revenue.Two credits and one debit
Which among the following statements is correct? The general public accountants conducting annual audits are responsible for continuous evaluations of a company"s device of inner regulate. External auditors are firm employees who evaluate the effectiveness of the company"s system of internal control on a consistent basis. Internal auditors are company employees who evaluate the performance of the company"s system of internal regulate on a continuous basis. Only large service providers employ inner auditors and also utilize a mechanism of interior controls.
Correct! Internal auditors are employees of the company and also repeatedly evaluate the performance of the company"s inner manage systems.Internal auditors are agency employees that evaluate the efficiency of the company"s device of internal control on a constant basis.
Bad Debts Expense is a nominal account and also is closed at the end of the fiscal duration, while Allowance for Doubtful Accounts is a actual account and stays open at the finish of the fiscal duration.
Butte Co. loaned $25,000 to Beavis Co. on June 1, at 12% interest for 3 months. What adjusting enattempt will certainly Butte Co. need to make on June 30 before preparing the financial statements on June 30? Interest Receivable 250 Interemainder Revenue 250 Interest Receivable 750 Interest Revenue 750 Interest Receivable 1,000 Interemainder Revenue 1,000 Interemainder Receivable 3,000 Interemainder Revenue 3,000
Correct! Interest earned is calculated by multiplying the principal times the interest rate times the percent of the year that has passed since the note was issued ($25,000 × 12% × 1/12 = $250).Interest Receivable 250 Interemainder Revenue 250
On the day a 90-day note is honored, just how a lot cash will the payee receive? Enattempt field via correct answer Maturity value less the confront worth Face worth Face value plus 90 days of interest Maturity value plus 90 days of interest
Correct! The maturity value is equal to confront value of the note (the principal) plus interemainder accrued for the 90-day term of the note. Face worth plus 90 days of interest
Which statement is true around reporting receivables on the balance sheet?What is accounts receivable contra accountEntry area with correct answer Bad Debts Expense is is presented as a deduction from Accounts Receivable on the balance sheet. Bad Debts Expense and also Allowance for Doubtful Accounts are presented as a deduction from Accounts Receivable on the balance sheet. Bad Debts Expense is subtracted from Accounts Receivable and is then shown as a deduction from Accounts Receivable on the balance sheet. Allowance for Doubtful Accounts is shown as a deduction from Accounts Receivable on the balance sheet.
Allowance for Doubtful Accounts is a contra asset account that is presented as a deduction from Accounts Receivble on the balance sheet in the current asset area.
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Which of these statements around Visa credit card sales is incorrect?Enattempt field with correct answer The retailer is not associated in the repertoire process. The retailer need to wait to receive payment from the issuer. The retailer receives cash more easily than it would from individual customers. The credit card issuer conducts the credit investigation of the customer.