TRUE OR FALSE

1. For the financial statement purposes, companies classify receivables as either current (long-term or non-current (short-term).

2. Receivables are further classified in the statement of financial position as either trade or non- trade receivables.

3. When material in amount, companies segregate restricted cash from "regular" cash for reporting purposes.

4. The transaction price is the amount of consideration that a company expects to receive from a supplier in exchange for transferring goods or services.

5. Assets are depreciated on the basis of systemic charges to expense.

6. Accounts payable are claims held against customers and others for money, goods, or services.

7. A revenue expenditure is an expenditure for the purchase or expansion of a fixed asset.

MULTIPLE CHOICE

8. All of the following are examples of financial assets except:

a. Investments in equity securities

b. Cash

c. Loans and receivables

d. Intangible assets.

9. Trade Discounts is used for all of the following except.

a. Offered as an inducement for prompt payment

b. Avoid frequent changes in catalogs

c. Hide the true invoice price from competitors

d Alternrices for different quantities nurchacad.