Multiple Choice Questions:

1. The two methods of accounting for uncollectible receivables are the allowance method and the

a. equity method

b. direct-write off method

c. cost method

d. interest method

2. Notes receivable may be issued

a. when assets are purchased

b. to a creditors who has probelms paying within account receivable terms.

c. when borrowing money

d. all of the above

3. The interest charged by a bank for a $100,000 note at 9% for 90 days is

a. $9,000

b. $2,250

c. $750

d. $1,000

4. The Sarbanes-Oxley Act requires that all major U.S. corporations

a. Maintain a monthly bank reconcilliation report.

b. maintain a petty cash fund

c. maintain an adequate system of internal control

d. must report filings to the national commission of Fradulentactvity