Self Assessment Quizzes

CHAPTER 24: Section 2 The Allowance Method

	1.	Accounting for uncollectible accounts by matching the estimated uncollectible accounts expense with sales made during the same period is called

		a.	the matching principle
		b.	the matching method
		c.	the allowance method
		d.	the sales matching method

	2.	Accounts Receivable and Allowance for Uncollectible Accounts are located

		a.	in the liability section of the balance sheet
		b.	in the asset section of the balance sheet
		c.	on the income statement
		d.	after Operating Expenses

	3.	If a sale is recorded in one period and the uncollectible account expense is recorded in the following period it violates the

		a.	law
		b.	matching principle
		c.	accounts receivable balance
		d.	good of the company

	4.	The Allowance for Uncollectible Accounts is

		a.	an asset account
		b.	a liability account
		c.	a contra asset account
		d.	an expense account

	5.	The accounts affected using the matching principle are

		a.	Accounts Receivable and Uncollectible Accounts Expense
		b.	Accounts Receivable and Cash in Bank
		c.	Uncollectible Accounts Expense and Cash in Bank
		d.	Uncollectible Accounts Expense and Allowance for Uncollectible Accounts

	6.	Accounts Receivable less Allowance for Uncollectible Accounts is the

		a.	adjusted sales
		b.	amount in Uncollectible Accounts Expense
		c.	book value of Accounts Receivable
		d.	amount that matches revenue

	7.	The balance of Allowance for Uncollectible Accounts represents the amount a business

		a.	estimates to be uncollectible
		b.	cannot collect
		c.	has in Accounts Receivable
		d.	has been unable to collect for 90 days

	8.	The accounts affected when journalizing Uncollectible Accounts are

		a.	Accounts Receivable and Uncollectible Accounts Expense
		b.	Allowance for Uncollectible Accounts and Accounts Receivable
		c.	Uncollectible Accounts Expense and Allowance for Uncollectible Accounts
		d.	Uncollectible Accounts Expense and Income Summary