Applecompanypurchasestradingsecurityfor$12,000.Theentrytorecordthistransactionwillincludea:
A. credittotheinvestmentaccount
B. debittotheinvestmentaccount
C. credittothedividendrevenueaccount
D. debittotheunrealizedgainaccount
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Whenacompanyreceivesacashdividendonatradingsecurity:
A. revenueisdecreased
B. assetsaredecreased
C. revenueisincreased
D. liabilitiesaredecreased
Whichaccountshowstheamountofaccountsreceivablethatthebusinessdoesnotexpecttocollect?
A. uncollectibleaccountsexpense
B. allowanceforuncollectibleaccounts
C. salesreturnandallowance
D. unearnedaccountsreceivable
Whichmethoddoesnotuseestimates?
A. direct-writeoffmethod
B. percent–of-sales
C. aging-ofreceivablesmethod
D. allowancemethod
Undertheallowancemethod,whenacompanydeterminesthattheywillnotbeabletocollectfromaparticularcustomer,theywilldebit:
A. allowanceforuncollectibleaccounts
B. uncollectible-accountexpense
C. accountsreceivable
D. salesrevenue
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