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Chapter 9 Accounting for Receivables?True/False Questions?1.?Accounts receivable occur from credit sales to customers.?Answer: True?Blooms: RememberAACSB: CommunicationAICPA BB: IndustryAICPA FN: MeasurementDifficulty: 1 EasyLearning Objective: 09-C1Topic: Accounts Receivable?2.?Credit sales are recorded by crediting an Accounts Receivable.?Answer: False ?Blooms: RememberAACSB: CommunicationAICPA BB: IndustryAICPA FN: MeasurementDifficulty: 1 Easy Learning Objective: 09-C1Topic: Accounts Receivable?3.?As long as a company accurately records total credit sales information, it is not necessary to have separate accounts for specific customers.?Answer: False ?Blooms: UnderstandAACSB: CommunicationAICPA BB: IndustryAICPA FN: Reporting Difficulty: 2 MediumLearning Objective: 09-C1Topic: Accounts Receivable?4.?If a customer owes interest on accounts receivable, Interest Revenue is debited and Accounts Receivable is credited.?Answer: False ?Blooms: RememberAACSB: AnalyticAICPA BB: IndustryAICPA FN: MeasurementDifficulty: 1 Easy Learning Objective: 09-C1Topic: Accounts Receivable 5.?If a credit card sale is made, the seller can either debit Cash or debit Accounts receivable at the time of the sale depending on the type of credit card.?Answer: True?Blooms: UnderstandAACSB: AnalyticAICPA BB: IndustryAICPA FN: MeasurementDifficulty: 2 MediumLearning Objective: 09-C1Topic: Credit Card Sales ?6.?Installment accounts receivable are classified as current assets, even though the installment period is more than one year, if the seller regularly offers customers such terms?Answer: True?Blooms: RememberAACSB: CommunicationAICPA BB: IndustryAICPA FN: ReportingDifficulty: 2 MediumLearning Objective: 09-C1Topic: Accounts Receivable?7.?Companies can report credit card expense as a discount deducted from sales or as a selling expense.?Answer: True?Blooms: RememberAACSB: CommunicationAICPA BB: IndustryAICPA FN: ReportingDifficulty: 1 EasyLearning Objective: 09-C1Topic: Credit Card Sales ?8.
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