Receivables

Question 1

These represent open accounts with customers

A. Trade receivables
B. Non-trade receivables
C. Accounts receivable
D. Notes receivable

Answer 1

C. Accounts receivable

Question 2

Upon initial recognition, accounts receivable are measured at:

A. Face value
B. Discounted value
C. Maturity value
D. Net realisable value

Answer 2

A. Face value

Question 3

Trade receivables that are expected to be collected within 12 months after the reporting period shall be presented in the statement of financial position at:

A. Net realisable value
B. Maturity amounts
C. Face amounts
D. Dscounted values

Answer 3

A. Net realisable value

Question 4

At the end of the reporting period, the accounts receivable should be presented in the statement of financial position at which of the following?

A. Gross amount
B. Face value
C. Net realisable value
D. Present value

Answer 4

A. Gross amount

Question 5

Which valuation allowance is a proper deduction from trade accounts receivable in arriving at the estimated realisable value?

A. Allowance for doubtful accounts
B. Allowance for trade discounts
C. Allowance for cash discounts
D. Allowance for freight charge

Answer 5

A. Allowance for doubtful accounts

Question 6

Trade receivables are classified as current assets when they are reasonably expected to be collected within:

A. One year
B. The normal operating cycle
C. One year or within the normal operating cycle, whichever is shorter
D. One year or within the normal operating cycle, whichever is longer

Answer 6

D. One year or within the normal operating cycle, whichever is longer

Question 7

Non-trade receivables are classified as current assets only if they are reasonably expected to be realised in cash within:

A. One year or within the normal operating cycle, whichever is shorter
B. The normal operating cycle
C. One year or within the normal operating cycle, whichever is longer
D. One year, the length of the operating cycle notwithstanding

Answer 7

D. One year, the length of the operating cycle notwithstanding

Question 8

Which is true concerning the presentation of receivables on the statement of financial position?

A. Trade receivables and non-trade receivables are shown separately
B. Non-trade receivables are presented as noncurrent assets
C. Trade accounts receivable and trade notes should be presented separately
D. Trade receivables and non-trade receivables, which are currently collectible, shall be presented as a one-line item called “Trade and Other Receivables”

Answer 8

D. Trade receivables and non-trade receivables, which are currently collectible, shall be presented as a one-line item called “Trade and Other Receivables”