1) The balance sheet reports accounts receivable at

: Question options: lower-of-cost-or-market.

historical cost.

fair value.

market value.

2)

Under the allowance method, if uncollectible account write-offs during the year exceed the allowance amount, the balance in allowance for doubtful accounts at year end prior to adjustment:

Question options:

	will be zero.
	should be deducted from accounts receivable.
	will be a debit.
	should be adjusted by debiting it to bring the balance back to zero.

3)

Daniels & Company accepted a nine-month, $24,000 note receivable, with 6% interest, from Renee Company on September 1, 2013. Daniels & Company's year end is December 31. The amount of interest on this note to be recognized by Daniels & Company in 2014 is:

Question options:

	$600.
	$480.
	$1,440.
	$1,080.

4)

A written promise to pay a specified amount of money at a particular future date is called a(n):

Question options:

	unearned revenue.
	promissory note.
	principal note.
	mature note.

5) A significant amount of credit balances in customer accounts should be shown on the financial statements as a(n):

Question options:

	liability.
	asset.
	owner's equity.
	contra asset.

6) A company that uses bank credit cards avoids all of the following except:

Question options:

	checking a customer's credit rating.
	keeping an accounts receivable subsidiary ledger for each customer.
	paying a credit card discount expense.
	having to collect cash from customers.

7) Under the allowance method, if uncollectible account write-offs during the year exceed the allowance amount, the balance in allowance for doubtful accounts at year end prior to adjustment:

Question options:

	will be zero.
	should be deducted from accounts receivable.
	will be a debit.
	should be adjusted by debiting it to bring the balance back to zero.

8)

The balance sheet reports accounts receivable at:

Question options:

	lower-of-cost-or-market.
	historical cost.
	fair value.
	market value.