1.All of the following are required when classifying receivables, except:

a.All of the choices are required when classifying receivables

b.Disclose all significant concentrations of credit risk arising from receivables

c.Indicate the receivables classified as current and noncurrent

d.Disclose any receivables pledged as collateral

2.In calculating the carrying amount of the loan receivable

a.Loan origination fee charged to the borrower

b.Indirect loan origination cost incurred by the lender

c.Interest incurred by the borrower

d.Direct loan origination cost incurred by the lender

3. The amortization of discount on notes receivable is

a.a deduction from interest income

b.an addition to interest income

c.a deduction from accrued interest receivable

d.an addition to accrued interest receivable

4. The amortization of premium on notes receivable is

a.an addition to interest income

b.an addition to accrued interest receivable

c.a deduction from accrued interest receivable

d.a deduction from interest income

5.Which method of recording bad debt loss is consistent with accrual accounting

a.Direct Writeoff Method

b.Allowance Method

C.Percentage of Sales Method

d.Percentage of Receivable Method