28 A company has realized that it will not be able to collect an amount of SR 5,500 from Mr X, one of its credit customer Which one of the following entry will be recorded by the company a Bad Debts Expense 5,500 Account Receivable Mr X 5,500 b Cash 5,500 Bad Debts Expenses 5,500 c Account Receivables Mr X 5,500 Sales 5,500 d Account Receivable Mr X 5,500 Bad Debts Expenses 5,500 29 Treasury stock purchases are a Non Operating activity b Financing activity c Operating activity d Investing activity 30 Days sales uncollected ratio is a Accounts receivable total average assets b Accounts receivable net credit sales 365 days c Credit sales average receivable d Average receivable credit sales 33 Under periodic inventory system a Cost of goods sold and ending inventory can be determined when making physical counting b Neither cost of goods sold nor ending inventory can be determined when making physical counting c Cost of goods sold can be determined for each sale transaction d Ending inventory can be determined at any time without physical counting 26 Which one of the following ratio is used to evaluate the companys efficiency in use of assets to generate sales Total asset turnover ratio b Gross Margin ratio c Current ratio d Debt equity ratio 27 Assume that a companys Net income is SR 10,000, Depreciation SR 3,000, A R increased by SR 2,000, A P increased by 4,000, Sale of Machinery SR 5,000, Purchase of Equipment SR 3,000, Common stock issued SR 15,000 and dividends paid SR 1,000 What would be the net cash from Investing and financing activities a SR 10,000 and SR 8,000 respectively b SR 21,000 and SR 2,000 respectively c SR 13,000 and SR 2,000 respectively d SR 2,000 and SR 14,000 respectively 28 A company has realized that it will not be able to collect an amount of SR 5,500 from Mr X, one of its credit customer Which one of the following entry will be recorded by the company a Bad Debts Expense 5,500 Account Receivable Mr X 5,500 b Cash 5,500 Bad Debts Expenses 5,500 c Account Receivables Mr X 5,500 Sales 5,500 d Account Receivable Mr X 5,500 Bad Debts Expenses 5,500

Question

28  A company has realized that it will not be able to collect an amount of SR 5,500 from Mr  X, one of its credit customer  Which one of the following entry will be recorded by the company  a  Bad Debts Expense 5,500 Account Receivable Mr  X 5,500 b  Cash 5,500 Bad Debts Expenses 5,500 c  Account Receivables Mr  X 5,500 Sales 5,500 d  Account Receivable Mr  X 5,500 Bad Debts Expenses 5,500 29  Treasury stock purchases are  a  Non Operating activity  b  Financing activity  c  Operating activity  d  Investing activity  30 Days sales uncollected ratio is a  Accounts receivable  total average assets  b  Accounts receivable  net credit sales  365 days c  Credit sales  average receivable d  Average receivable  credit sales 33  Under periodic inventory system a  Cost of goods sold and ending inventory can be determined when making physical counting  b  Neither cost of goods sold nor ending inventory can be determined when making physical counting  c  Cost of goods sold can be determined for each sale transaction  d  Ending inventory can be determined at any time without physical counting  26 Which one of the following ratio is used to evaluate the companys efficiency in use of assets to generate sales  Total asset turnover ratio b  Gross Margin ratio c  Current ratio d  Debt equity ratio 27 Assume that a companys Net income is SR 10,000, Depreciation SR 3,000, A R increased by SR 2,000, A P increased by 4,000, Sale of Machinery SR 5,000, Purchase of Equipment SR 3,000, Common stock issued SR 15,000 and dividends paid SR 1,000  What would be the net cash from Investing and financing activities a  SR 10,000 and SR 8,000 respectively b  SR 21,000 and SR 2,000 respectively c  SR 13,000 and SR 2,000 respectively d  SR 2,000 and SR 14,000 respectively 28 A company has realized that it will not be able to collect an amount of SR 5,500 from Mr  X, one of its credit customer  Which one of the following entry will be recorded by the company  a  Bad Debts Expense 5,500 Account Receivable Mr  X 5,500 b  Cash 5,500 Bad Debts Expenses 5,500 c  Account Receivables Mr  X 5,500 Sales 5,500 d  Account Receivable Mr  X 5,500 Bad Debts Expenses 5,500

Accepted Answer

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	a.	Bad Debts Expense 5,500 Account Receivable Mr. X 5,500
	b.	Cash 5,500 Bad Debts Expenses 5,500
	c.	Account Receivables Mr. X 5,500 Sales 5,500
	d.	Account Receivable Mr. X 5,500 Bad Debts Expenses 5,500

	a.	Non-Operating activity.
	b.	Financing activity.
	c.	Operating activity.
	d.	Investing activity.

	a.	Accounts receivable/ total average assets.
	b.	Accounts receivable/ net credit sales* 365 days
	c.	Credit sales/ average receivable
	d.	Average receivable/ credit sales

	a.	Cost of goods sold and ending inventory can be determined when making physical counting.
	b.	Neither cost of goods sold nor ending inventory can be determined when making physical counting.
	c.	Cost of goods sold can be determined for each sale transaction.
	d.	Ending inventory can be determined at any time without physical counting.

	a.	Bad Debts Expense 5,500 Account Receivable Mr. X 5,500
	b.	Cash 5,500 Bad Debts Expenses 5,500
	c.	Account Receivables Mr. X 5,500 Sales 5,500
	d.	Account Receivable Mr. X 5,500 Bad Debts Expenses 5,500

Question

28. A company has realized that it will not be able to collect an amount of SR 5,500 from Mr. X, one of its credit

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Total asset turnover ratio
	b.	Gross Margin ratio
	c.	Current ratio
	d.	Debt equity ratio

	a.	SR 10,000 and SR 8,000 respectively
	b.	SR 21,000 and SR 2,000 respectively
	c.	SR 13,000 and SR 2,000 respectively
	d.	SR 2,000 and SR 14,000 respectively