Acme Consulting has the following assets at the balance sheet date: Cash in bank (savings account) $ 5,000; Amounts due from customers $ 14,000, Post-dated checks $4,000, Checking account balance $12,000. Hence, the amount of cash reported in the balance sheet is $19,000 *

True

False

Common stock has contractual provisions that give it priority over preferred stock in certain areas. Typically, common stockholders have the first claim over dividend payments and assets proceedings in the event of a liquidation. They usually do not have voting rights. *

True

False

Entries for notes receivable are required when the note is received and at maturity. To illustrate, assume that on June 1, 2020, Acme Company receives a $5,000, 3-month, 12% note receivable from Paul Revere in settlement of an open account. The journal entry is on June 1 would be - Notes Receivable $ 5,000 (Debit), Accounts Receivable $ 5,000 (Credit) *

True

False