Question

1. Taxes receivable is classified as: a.notes receivable. b.trade receivables. c.accounts receivable. d.other receivable. 2. A...

1. Taxes receivable is classified as:

a.notes receivable.

b.trade receivables.

c.accounts receivable.

d.other receivable.

2. A transaction in which a company sells its receivables and immediately receives cash for operating and other needs is called _____.

a.factoring

b.discounting

c.adjusting

d.assigning

3. Jack Inc. offers a credit term of n/30. This means that the company:

a.offers a 30-day loan to the suppliers.

b.expects to collect receivables every 30 days.

c.pays its creditors within 30 days of the purchase of raw materials.

d.receives money from the customers 30 days after the of sale of the goods.

4. Days' sales in receivables estimates the average number of days it takes to:

a.collect accounts receivables.

b.collect cash sales.

c.convert inventory to sales.

d.convert raw material to inventory.

Business   Accounting   
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Homework Answers

Answer #1
1
Taxes receivable is classified as other receivable.
Option D is correct
2
A transaction in which a company sells its receivables and immediately receives cash for operating and other needs is called factoring
Option A is correct
3
This means that the company expects to collect receivables every 30 days.
Option B is correct
4
Days' sales in receivables estimates the average number of days it takes to collect accounts receivables
Option A is correct
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