1. In reference to a promissory note, the person who is to receive payment is called the (Points : 2)

maker. payee. seller. payor.

2. When merchandise sold is assumed to be in the order in which the expenditures were made, the inventory method is called (Points : 2)

first-in, last-out. last-in, first-out. first-in, first-out. average cost.

3. What type of account is Allowance for Doubtful Accounts? (Points : 2)

Contra asset Asset Revenue Expense

4. A written promise to pay a sum of money on demand or at a definite time is called a(n) (Points : 2)

default. deferral. accrual. promissory note.

5. The amount of the promissory note plus the interest earned on the due date is called the (Points : 2)

realizable value. maturity value. face value. net realizable value.

6. Allowance for Doubtful Accounts is listed on the balance sheet under the caption (Points : 2)

stockholders' equity. investments. fixed assets. current assets.

7. A 60-day, 10% note for $6,000 dated April 15 is received from a customer on account. The face value of the note is (Points : 2)

$6,100. $5,400. $5,900. $6,000.

8. The due date of a 90-day note dated July 5 is (Points : 2)

September 30. October 2. October 3. October 1.

9. The presentation of net accounts receivable on the balance sheet will be most accurate under the (Points : 2)

direct write-off method. estimate based on the percentage of sales method. estimate based on analysis of receivables. none of these.

10. The inventory method that assigns the most recent costs to cost of goods sold is (Points : 2)

FIFO. LIFO. average cost. specific identification.