Self Assessment Quizzes

CHAPTER 24: Section 1 The Direct Write-Off Method

	1.	If a customer whose account was written off later pays the amount owed

		a.	return the money since it was already written off
		b.	reinstate the customer`s account
		c.	record the cash receipt
		d.	reinstate the customer`s account, then record the cash receipt

	2.	An uncollectible account is

		a.	an asset to the company
		b.	a liability to the company
		c.	an expense to the company
		d.	revenue to the company

	3.	When a customer fails to pay the amount due on account, it is called

		a.	a write- off
		b.	a lost account
		c.	an uncollectible account
		d.	a rider account

	4.	The method used by most small businesses and those with few charge customers for adjusting unpaid accounts is

		a.	the direct write-off method
		b.	the accounts receivable method
		c.	the uncollectible method
		d.	the bad debt allowance method

	5.	When an unpaid balance on an account is written off it

		a.	increases Accounts Receivable
		b.	decreases Accounts Receivable
		c.	increases Accounts Payable
		d.	decreases Accounts Payable