1) Because of their special nature, nontrade receivables are generally

a) reported as cash and cash equivalents.

b) classified and reported as separate items on the statement of financial position.

c) classified in a note that is cross referenced to the statement of financial position.

d) both b) and c) are correct.

2) Which of the following is not an example of a nontrade receivable?

a.Amounts arising from sale of goods or services.

b.Dividends and interest receivable.

c.Amounts owing from a purchaser on sale of capital.

d.Claims against insurance companies for losses suffered

3) The general accounting standards for recognition and measurement of accounts receivable include

a.not recognizing the receivable until it is paid.

b.measuring the receivable initially at amortized cost.

c.measuring the receivable initially at fair value.

d.after initial recognition, measuring the receivable at fair value.

4) "Sales Returns and Allowances" are reported as

a.an expense.

b.an addition to Accounts Receivable.

c.a deduction from Accounts Receivable.

d.a deduction from Sales Revenue.