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Flashcards in Mod 12 Wrong Answers Deck (16)
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0
Q

An NSF check should not be included in cash until it has…2

A

1 been redeposited
And
2 has cleared the bank

1
Q

A postdated check is not acceptable for deposit and is therefore…

A

Not considered cash

2
Q

In a reconciliation, in which an entry was made for a check that has not been mailed until after the end of the year should…

A

Be added back in to the checking balance

3
Q

How do you calculate under the aging method, the allowance for uncollectible accounts at year end?

A

Ending balance of allowance account =

Aging amount of A/R x estimated % uncollectible

4
Q

When an A/R that was previously written off is collected, what 2 entries must be made?

A

1 A/R. Xxx
Allowance for uncollectible accounts Xxx

2 cash. Xxx
Accounts receivable. Xxx

5
Q

When a company uses the allowance method to recognize uncollectible accounts expense, what is the effect at the time of collection on allowance for uncollectible accounts?

A

Increases

6
Q

Assignment of accounts receivable is a financing arrangement whereby…

A
The owner of the receivables (assignor) obtains a loan from
The lender (assignee) by pledging the A/R as collateral
7
Q

If financial assets are exchanged for cash or other consideration, but the transfer does not meet the criteria to be accounted for as a sale, both the transferor and transferee should accounts for the transfer as a…2

A

Secured borrowing and pledge of collateral

8
Q

Accounts receivable turnover calculation

A

Accounts receivable turnover = net credit sales/average A/R

9
Q

IFRS defines a provision as…

A

A liability that is uncertain in timing or amount

10
Q

Under IFRS, What are provisions made for?

2) How are they recorded?

A

Provisions are made for estimated liabilities

2) Recorded as loss in earnings for period if outcome is probable
And measurable

11
Q

Under IFRS, if long term debt becomes callable due to the violation of a loan covenant, the debt must be…

A

Reclassified as current

12
Q

The words “reasonably possible” require…

A

Disclosure of the item

13
Q

What is the journal entry for:

Write offs of allowance for uncollectible accounts?

A

Allowance for uncollectible accounts. Xxx

Accounts receivable. Xxx

14
Q

What is the journal entry for:

Recoveries on allowance for uncollectible accounts?

A

Accounts receivable. Xxx
Allowance for uncollectible accounts. Xxx

Cash. Xxx
Accounts receivable. Xxx

15
Q

What is the journal entry for uncollectible accounts expense?

A

Uncollectible accounts expense. Xxx

Allowance for uncollectible accounts. Xxx