财务会计英语练习及答案ch8.doc

CHAPTER 8 RECEIVABLESChapter 8—Receivables TRUE/FALSE 1. Notes receivable and accounts receivables can also be called trade receivables. ANS: T DIF: 1 OBJ: 01 2. Receivables from company owners and officers should be disclosed separately on the balance sheet. ANS: T DIF: 1 OBJ: 01 3. Receivables not currently collectible are reported in the investments section of the balance sheet. ANS: T DIF: 1 OBJ: 01 4. Since those responsible for receivables record keeping and credit approval do not handle cash, these duties do not need to be separated to maintain good internal control. ANS: F DIF: 1 OBJ: 02 5. Maintaining the Accounts Receivable control account and the Accounts Receivable Subsidiary Ledger should be assigned to the same employee for good internal control. ANS: F DIF: 1 OBJ: 02 6. When companies sell their receivables to other companies, the transaction is called factoring ANS: T DIF: 01 OBJ: 03 7. Of the two methods of accounting for uncollectible receivables, the allowance method provides in advance for uncollectible receivables. ANS: T DIF: 1 OBJ: 03 8. The difference between Accounts Receivable and its contra asset account is called net realizable value. ANS: T DIF: 1 OBJ: 04 9. The estimate based on sales method violates the matching principle. ANS: F DIF: 2 OBJ: 04  10. When the estimate based on analysis of receivables is used, income is reduced when a specific receivable is written off. ANS: F DIF: 2 OBJ: 04 11. When an account receivable that has been written off is subsequently collected, the account receivable is reinstated. ANS: T DIF: 2 OBJ: 04 12. Although Allowance for Doubtful Accounts normally has a credit balance, it may have either a debit or a credit balance before adjusting entries are recorded at the end of the accounting period. ANS: T DIF: 1 OBJ: 04 13. At the end of a period, before the accounts are adjusted, Allowance for Doubtful Accounts has a credit balance of $250, and net sales on account for the period total $500,0