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6. Trade receivables are classified as current assets when they are reasonably expected to be collected a. Within one year b. Within the normal operating

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6. Trade receivables are classified as current assets when they are reasonably expected to be collected a. Within one year b. Within the normal operating cycle c. Within one year or within the normal operating cycle whichever is shorter d. Within one year or within the normal operating cycle whichever is longer 7. Nontrade receivables are classified as current assets only if they are reasonably expected to be realized in cash a. Within one year or normal operating cycle, whichever is shorter. b. Within the normal operating cycle c. Within one year or the normal operating cycle, whichever is longer d. Within one year, the length of the operating cycle notwithstanding Which is true concerning the balance sheet presentation of receivables? a. Trade receivables and nontrade receivables are shown separately. b. Nontrade receivables are presented as noncurrent assets. c. Trade accounts receivable and trade notes should be presented separately, d. Trade receivables and nontrade receivables, which are currently collectible, shall be presented as one line item called "trade and other receivables". 8. 9. A discount given to a customer for purchasing a large volume of merchandise is typically referred to as a. Quantity discount b. Cash discount c. Trade discount d. Size discount 10. Which of the following is false in relation to cash and trade discounts? a. Cash discounts are reductions in the invoice price allowed when payment is made within the discount period while trade discounts are reduction from the list price or catalog price in order to get the invoice price or amount actually charged to the buyer. b. Cash discounts are recorded but trade discounts are not recorded. c. The purpose of cash discounts is to encourage prompt payment while the purpose of trade discounts is to encourage trading or promote sales. d. Both purchases with trade and cash discounts should be recorded at net

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