Cash And Receivables Flashcards

Question 1

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True or false

Savings Account are usually classified as cash on the statement of financial position

Question 2

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True or false

Certificates of deposit are usually classified as cash in the statement of financial position

Question 3

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True or false

Companies include postdated checks and petty cash fund as cash

Question 4

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True or false

Cash equivalents are investments with original maturities of six months or less

Question 5

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True or false

Bank overdrafts are always included as part of cash in the statement of financial position

Question 6

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True or false

Short term, highly liquid investment may be included with cash in the statement of financial position

Question 7

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True or false

Receivables are classified in the statement of financial position as either trade or non-trade receivables

Question 8

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True or false

Trade receivables includes notes receivable and advances to officers and employees

Question 9

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True or false

Trade discounts are used to avoid frequent changes in catalogs and to alter prices for different quantities purchased

Question 10

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True or false

In the gross method, sales discounts are reported as a deduction from sales

Question 11

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True or false

Ideally, a company should measure receivables in terms of their present value, that is, the discounted value of the cash to be received in the future

Question 12

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True or false

Thé international accounting standard board requires that companies assess their receivables for impairment each reporting period and begin the impairment assessment by considering whether objective evidence indicates that one or more loss events have occurred

Question 13

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True or False

The international accounting standard board requires that when performing an impairment assessment all receivables that are individually significant should be considered for impairment separately

Question 14

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True or false

The percentage-of-receivables approach of estimating uncollectible accounts emphasizes matching over valuation of accounts receivable

Question 15

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True or false

The percentage-of-sales method results in a more accurate valuation of receivables on the balance sheet

Question 16

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True or false

Companies record and report long-term notes receivable in a discounted basis

Question 17

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True or false

When the stated rate of interest exceeds the effective rate, the present value of the note receivable will be less than its face value

Question 18

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True or False

When buying receivables with recourse, the purchaser assumes the risk of collectibility and absorbs any credit loss

Question 19

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True or false

If substantially, all the risks and rewards of ownership of the receivables are transferred, then they are derecognized

Question 20

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True or false

The international accounting standards board believes that historical cost for financial instruments provides more relevant and understandable information than fair value

Question 21

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True or false

Under IFRS, A company may select the fair value option or amortized cost for valuing a group of receivables at each statement of financial position date

Question 22

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True or false

Under IFRS, a company will derecognize its receivables when it elects to use the fair value option for a receivable

Question 23

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True or false

Under IFRS, a company will derecognize its receivables when the contractual rights to the cash flows of the receivables no longer exist

Question 24

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True or false

Under IFRS, de-recognition of a receivable is determined by using lack of control as the primary criterion

Question 25

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True or false

The accounts receivable turnover is computer by dividing net sales by the ending net receivables

Question 26

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