Quiz Detail

Q1 . What type of account is Allowance for Doubtful Accounts?

A Asset

B Expense

C Contra-asset

D Contra-expense

Q2 . The journal entry "debit interest receivable, credit interest revenue" is made under which circumstance?

A The company receives an interest payment on a note receivable

B The company accrues interest because it has a note receivable whose term crosses a fiscal period end

C The company issues a note receivable

D The company collects repayment of a note receivable

Q3 . If a customer pays with his or her debit card, which account should the store debit?

A Cash

B Accounts receivable

C Notes receivable

D Bad debt expense

Q4 . Which of the following can be found on the balance sheet?

A Accounts Receivable

B Allowance for Doubtful Accounts

C Net Accounts Receivable

D All of the Above

Q5 . Which of the following journal entries is the transaction to write off a customer's account?

A Debit: Allowance for Doubtful Accountscredit: Accounts Receivable

B Debit: Bad Debt Expensecredit: Allowance for Doubtful Accounts

C Debit: Bad Debt Expensecredit: Accounts Receivable

D Debit: Allowance for Doubtful Accountscredit: Bad Debt Expense

Q6 . Which of the following journal entries is the adjusting entry to estimate bad debts for the period?

A Debit: Allowance for Doubtful Accountscredit: Accounts Receivable

B Debit: Bad Debt Expensecredit: Allowance for Doubtful Accounts

C Debit: Bad Debt Expensecredit: Accounts Receivable

D Debit: Allowance for Doubtful Accountscredit: Bad Debt Expense

Q7 . Which of the following accounts gets closed at the end of the fiscal period?

A Bad debt expense

B Allowance for doubtful accounts

C Accounts receivable

D All of the above

Q8 . Compared to accounts receivable, notes receivable are generally ...

A Longer term

B Interest bearing

C Both of the above

D None of the above

Q9 . If you are debiting Notes Receivable, what could you credit?

A Accounts receivable

B Cash

C Sales

D Any of the above are possible

Q10 . If, before you adjust for bad debts, the Allowance for Doubtful Accounts account has a debit balance, how did this happen?

A Your estimate for bad debts at the end of last year was too high.

B During the year, you collected payment from lots of people whose accounts you had previously written off.

C This years credit sales were higher than expected.

D Your write-offs during the year were higher than expected.

12 Accounting - December 3, 2015