Deneme Sınavı Soruları

Bad debts expense is not reflected actual losses from the uncollectible receivables

The loss amount is not charged to the uncollectible account expense

Companies use allowance account for the expenses based on estimates

Companies could estimate bad debts losses in this method

It is mainly used by relatively small and private companies

Only I

Only II

I and III

II and III

I, II and III

Only I

Only III

I and II

I and III

I, II and III

Specific Identification Method

Average Cost Method

First-In, First-Out (FIFO) Method

Last-In, First-Out (LIFO) Method

Total Cost Method

Control environment

Risk assessment

Control activities

Information and communication

Monitoring activities

Sales returns and allowances are the amount owed to a company by customers as a result of delivering goods or services

Sales returns and allowances are comparably liquid form of asset, where usually it takes 30 to 90 days to be converted into cash.

Sales returns and allowances are recognized when a company delivers good or services on credit

Sales returns and allowances show the credit sales price adjusted for returns,
discounts, and allowances

Sales returns and allowances reduce the amount of accounts receivables.

Cost per unit = Purchase returns + Purchase price – Purchase discounts –  Purchase returns - Freight in

Cost per unit = Purchase discounts- Purchase price – Purchase returns + Freight in

Cost per unit = Purchase price – Purchase discounts – Purchase returns + Freight in

Cost per unit = Purchase price – Purchase discounts + Purchase returns + Freight in

Cost per unit = Purchase price – Purchase discounts – Purchase returns - Freight in

Recognition of sales on hand

Validation of accounts receivable

Disposition of accounts receivable

Proposing  a new receivable

Expansion of receivables

Consistency Principle

Disclosure Principle

Materiality Concept

Conservatism Concept

Current Value Principle

Accounts Receivable, Sales Returns and Allowances

Cash, Sales Returns and Allowances

Banks, Sales Returns and Allowances

Cash, Sales Revenue

Sales Revenue, Banks

The Sales account is used to record only sales on account.

A service company purchases products from suppliers and then sells them.

Gross profit = Net sales revenue+Cost of goods sold

Net sales revenue = Sales Revenue – (Sales Returns and Allowances + Sales Discounts)

The invoice is the purchaser’s request for collection from the customer.

Consistency principle

Disclosure principle

Conservatism

Materiality principle

Specific identification method

Inventories

Current Assets

Retail

Raw Materials

Finished Goods

It is called as deferred expense. 

It is called as accrued expense.

It is an advance payment of future expenses.

It is a prepayment

It is called as prepaid expense.

Managerial accountant

Marketing Managers

Regulatory and supervisory authorities

State and trade-unions

Investors and creditors  

Benefit

Income

Expense

Revenue

Loss

Deferred revenue, also known a sort of revenue, refers to payments a company already received for products or services in the past. 

Delivery of the good or service to the customer, but the deferred revenue is not reclassified as an asset.

In deferred revenue, revenue is recognized before the cash is received.

Deferred revenue, also known as unearned revenue, refers to advance payments a company receives for products or services that are to be delivered or performed in the future. 

The deferred revenue  is an expense and  decrease in owner’s equity that results from operations.

Investors

Creditors

Managers

Customers

Suppliers

Income statement-Owner's equity statement-Balance sheet-Statement of cash flows

Owner's equity statement-Income statement-Balance sheet-Statement of cash flows

Income statement-Balance sheet-Owner's equity statement-Statement of cash flows

Statement of cash flows-Income statement-Owner's equity statement-Balance sheet

Dual effect

Income statement

Owner’s equity statement

Balance sheet 

Statement of cash flows