The buyer who purchases and takes ownership of

Assignment Help Accounting Basics

Reference no: EM13482613

1) The buyer who purchases and takes ownership of anothercompany's accounts receivable is called a:

a) payer
b) pledgor
c) factor
d) payee
e) pledgee

2) Pledging receivable:

a) allows firms to raise cash
b) allows a form to retain ownership of its receivables
c) does not transfer risk of bad debts to the lendor
d) should be disclosed in the financial statements
e) all of these

3) A company factored $45,000 of its accounts receivable and wascharged a 3% factoring fee. The journal entry to record thistransaction would include a:

a) debit to cash of $45,000, a debit to factoring fee expense of$1,350, and a credit to accounts receivable of $43,650.
b) debit to cash of $45,000 and a credit to accounts receivable of$45,000
c) debit to cash of $43,650, a debit to factoring fee expense of$1,350, and a credit to accounts receivable of $45,000.
d) debit to cash of $46,350 and a credit to accounts receivable of$46,350.
e) debit to cash of $45,000 and a credit to notes payable of$45,000

4) a company has net sales of $900,000 and average accountsreceivable of $300,000. what is its accounts receivable turnoverfor the period?

a) 0.20
b) 5.00
c) 73.0
d) 3.0

5) dell reported net sales of $8,739 million and average accountsreceivable of $864 million. its accounts receivable turnoveris:

a) 0.90
b) 10.1
c) 36.1
d) 50.0
e) 3,686

6) Pepsi accounts receivable turnover was 9.9 for this year and11.0 for last year. Coke's turnover was 9.3 for this year and 9.3for last year. These results imply that:

a) coke has the better turnover for both years
b) pepsi has the better turnover for both years
c)cokes turnover is improving
d) cokes credit policies are too loose
e) coke is collecting its receivables more quickly than pepsi inboth years

Reference no: EM13482613

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