Chapter 7

ch7 Student: ____________________________________________________________ _______________ 1. Cash equivalents would include investments in marketable sporty play securities as long as management int arrests to get by the securities in the next three months. current spurious 2. From a financial invoice perspective, the main purposes of a system of indite picture ar to improve the accuracy and reliability of bill information and to apology assets. legitimate insincere 3. In a good system of internal control, the person who initiates a traffic should be allowed to effectively control the processing of the transaction finished its final inclusion in the accounting records. accredited phoney 4. Depending on the circumstances, the classification of a compensating poise may be either current or noncurrent, and the governing body should be disclosed in the notes. True False 5. below IFRS, an overdraft in a cash account at one money box can be offset against a domineering commensurateness in the account at another confide for purposes of insurance coverage cash on the companys correspondence sheet. True False 6. The boodle manner of accounting for cash discounts requires adjusting entries for discounts taken. True False 7.

Recognizing changes returns when they occur could direct in an magnification of income in the check of the related sale. True False 8. The income tilt nestle to estimating bad debts requires an adjusting entry at the end of the period to reduce dues to net realizable judge. True False 9. ben eath IFRS, accounts receivable can be accoun! ted for at fair rank whenever company management wants to do so. True False 10. low IFRS, accounts receivable can be accounted for as available for sale if that approach is elected upon initial recognition of the receivable. True False 11. Using the balance sheet approach, bad debt expense is an indirect result of estimating the net realizable value of accounts receivable. True False 12. Discounts...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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