Reference no: EM132580404

Question 1. The Allowance for Bad Debts is contra to the following account:

a. Revenue.

b. Cash.

c. Accounts receivable.

d. Bad Debt Expense.

e. None of the above.

Question 2. When an account receivable is written off under the direct write-off method the following is required:

a. A debit to Bad Debt Expense.

b. A credit to Accounts Receivable.

c. A credit to Doubtful Accounts

d. a and b

e. none of the above.

Question 3. A detailed analysis of the accounts receivable to determine the length of time each account has been outstanding is called:

a. Taking a percentage of sales on account.

b. Aging the accounts receivable.

c. Analyzing the accounts receivable.

d. Aging the uncollectible accounts.

e. None of the above.

Question 4. The discount on a note payable gradually becomes:

a. Interest Expense

b. Interest Revenue

c. Interest Payable

d. Interest Receivable

e. none of these

Question 5. Accrued interest receivable is a(n):

a. revenue account

b. liability account

c. asset account

d. revenue account

e. expense.