034 Accounting Receivable Intro

Question 1

What is the measurement attribute of accounts receivable?

Answer 1

Net realizable value.

Question 2

Does International Financial Reporting Standards (IFRS) permit recognition of accounts receivable when there is a firm sales commitment?

Answer 2

In some instances when the recognition criteria have been met.

Question 3

Are notes receivable typically related to customer transactions?

Answer 3

No, they are not typically related.

Question 4

What factors affect receivable valuation?

Answer 4

Trade Disount; Sales discounts; Sales returns and allowances; Uncollectible accounts.

Question 5

List the two methods of accounting for accounts receivables.

Answer 5

Gross and Net

Question 6

List the characteristics of notes receivables.

Answer 6

1 Typically non-customer transactions; 2 Longer time frame; 3 Have an interest element.

Question 7

List the characteristics of accounts receivables.

Answer 7

1 Typically related to customer contracts; 2 Short time frame; 3 Typically no interest element

Question 8

What other name is used for customer accounts receivable?

Answer 8

Trade Receivable

Question 9

How are receivables accounted for using the gross method?

Answer 9

Records receivables at gross invoice price (before cash discount).

Question 10

Define “contra to sales”.

Answer 10

Sales discounts