When using the percentage of sales method of estimating uncollectible accounts,

Question 1 When using the percentage of sales method of estimating uncollectible accounts, any existing balance in the Allowance for Uncollectible Accounts account is ignored as long as the account has a credit balance after adjustment.TrueFalse2 points Question 2 In counting the days of interest on a note, the day the money is borrowed is omitted, but the day it is paid back is counted.TrueFalse2 points Question 3 Credit card companies absorb the loss from uncollectible accounts.TrueFalse2 points Question 4 Both a company’s credit terms and collection policies affect accounts receivable turnover.TrueFalse2 points Question 5 Generally, the older the account receivable, the lower the probability of collection.TrueFalse2 points Question 6 When a company collects sales taxes from customers, the amount of taxes collected represents a revenue.TrueFalse2 points Question 7 When a note is dishonored, the payee should debit Accounts Receivable for the maturity value of the note.TrueFalse2 points Question 8 When a note is dishonored, the payee will make an entry that includes a credit to:A.Accounts Receivable.B.Cash.C.Notes Receivable.D.Interest Payable.2 points Question 9 Maxwell issued to Prentice Co., a $2,400, 90-day, 12 percent note for the purchase of goods. The journal entry needed on Prentice Company’s books at the time of sale is:A.Notes Receivable2,472 Sales2,400 Interest Revenue72B.Notes Receivable2,400 Sales2,400C.Notes Receivable2,436 Sales2,436D.Notes Receivable2,400Interest Revenue72 Sales2,4722 points Question 10 In estimating uncollectible accounts for a period, the percentage of sales method is the simplest method.TrueFalse2 points Question 11 The interest rate on notes receivable and notes payable is generally stated in annual terms.TrueFalse2 points Question 12 When a note is dishonored, the payee will make an accounting entry that includes a debit to Notes Receivable.TrueFalse2 points Question 13 An example of a contingent liability is:A.accounts payable.B.federal excise tax payable.C.salaries payable.D.potential loss from a lawsuit.2 points Question 14 The preemptive right refers to a stockholder’s right to receive dividends when they are declared by the board of directors.TrueFalse2 points Question 15 The date of record (of dividends) is the date established by the board of directors to determine who will receive a dividend.TrueFalse2 points Question 16 One of the most basic rights of the stockholder is the right to vote at stockholders’ meetings in person or by proxy.TrueFalse2 points Question 17 The market value of a stock depends on a number of factors, including investors’ expectations regarding the future performance of a corporation.TrueFalse2 points Question 18 When Retained Earnings is debited in a journal entry, a deficit exists.TrueFalse2 points Question 19 Which of the following statements regarding earnings per share is correct?A.Earnings per share and book value per share are equal.B.Earnings per share is calculated for all shares of stock that have been issued by the corporation.C.Only one earnings per share figure will appear on the income statement for each period.D.Earnings per share is equal to net income divided by the weighted-average number of common shares outstanding if the corporation has no preferred stock outstanding.2 points Question 20 Treasury stock is stock that:A.is apportioned to cover special projects such as the construction of a new building.B.has been issued but was reacquired by the corporation.C.must be offered to existing stockholders first in amounts proportional to their shareholdings of the issuer’s stock.D.has never been issued.2 points Question 21 The price-earnings ratio is computed by dividing the current market price per share of common stock by earnings per share.TrueFalse2 points Question 22 The charter is the contract between the state and the incorporators which gives the corporation its separate legal existence.TrueFalse2 points Question 23 The three significant cash dividend dates are the date of declaration, date of record, and date of payment.TrueFalse2 points Question 24 Which of the following is a characteristic of a corporation?A.Separate legal existenceB.Shareholders may enter into a contract on behalf of the corporationC.Difficult transferability of ownership because of widely scattered ownershipD.Full liability of owners to corporate creditors2 points Question 25 The three significant cash dividend dates are (in order) the dates of:A.declaration, record, and payment.B.record, distribution, and payment.C.declaration, record, and distribution.D.declaration, distribution, and payment.2 points Question 26In The Profit’s A Stein Meats Receivables Video clip, Jamie, Marcus’ Portfolio Manager, uncovers that Stein Meats owes how much in liabilities?$500,000$7.8 million$4 million$2 million2 points Question 27In The Profit’s A Stein Meats Receivables Video clip, it is easy to collect monies from customers who are past due. TrueFalse2 points Question 28In The Profit’s A Stein Meats Receivables Video clip, what is the main reason that Stein Meats is struggling financially?They don’t sell enough meat.They extend credit to their customers and don’t collect from them. Employees are stealing.They owe too much to the bank.2 points Question 29In The Profit’s A Stein Meats Receivables Video clip, how much money does Stein Meats have in the bank to pay their bills?$30,000$300,000$500,000$4 million2 points Question 30In The Profit’s A Stein Meats Receivables Video clip, how much revenue does Stein Meats do annually?$18 million$4 million$50 million$1 million