Accounts Receivable Questions

Q:

How debtors play its role in Accounts receivable?

Answer

Debtors are the main role of the business. he is the entire back bone of the business. The goodwill of the concern is in the hands of debtors because he is the person who takes our product or raw material to the customer or manufacture. so he is takes the main role in the business in finance and business development

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0 2115
Q:

How important does Accounts receivable for small business and why?

Answer

Accounts Receivables help small businesses by providing short-term liquidity. Also continued sales on credit provide the much needed continuity for small businesses.

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0 2069
Q:

The accounting process involves all of the following except

A) identifying economic transactions that are relevant to the business B) analyzing and interpreting financial reports
C) communicating financial information to users by preparing financial reports D) recording nonquantifiable economic events
 
Answer & Explanation Answer: B) analyzing and interpreting financial reports

Explanation:

The three steps in the accounting process are

 

1. Identification,

2. Recording, and

3. Communication. 

 

Hence, analyzing and interpreting financial reports is not involved in the accounting process.

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Filed Under: Accounts Receivable
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

0 2003
Q:

On a bank reconciliation, deposits in transit are

A) added to the book balance B) added to the bank balance
C) deducted from the book balance D) None of the above
 
Answer & Explanation Answer: B) added to the bank balance

Explanation:

A deposit in transit is cash (currency, coins, checks, electronic transfers) that a company has received and is rightfully reported as Cash on its balance sheet, but does not appear on the bank statement until a later date.

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Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

0 1933
Q:

Which of the following is not economic investment?

A) the piling up of inventories on a grocer's shelf B) the purchase of a drill press by the Ajax Manufacturing Company
C) construction of a suburban housing project D) the purchase of 100 shares of AT&T by a retired business executive
 
Answer & Explanation Answer: D) the purchase of 100 shares of AT&T by a retired business executive

Explanation:
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Filed Under: Accounts Receivable
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

1 1911
Q:

In a general sense, "cash flow" can be said to equal

A) operating income less taxes B) operating income after taxes minus depreciation
C) operating income less taxes plus depreciation D) operating income before depreciation and taxes plus depreciation
 
Answer & Explanation Answer: B) operating income after taxes minus depreciation

Explanation:
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Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

1 1874
Q:

Which one of the following is not a 'Money Market Instrument'?

A) Commercial Paper B) Equity Shares
C) Certificate of Deposit D) Treasury Bills
 
Answer & Explanation Answer: B) Equity Shares

Explanation:

Money market instruments are debt securities that generally give the owner the unconditional right to receive a stated, fixed sum of money on a specified date.


There are several money market instruments in most Western countries, including treasury bills, commercial paper, bankers' acceptances, deposits, certificates of deposit, bills of exchange, repurchase agreements, federal funds, and short-lived mortgage- and asset-backed securities.

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Job Role: Analyst , Bank Clerk , Bank PO

1 1804
Q:

The principle of diversification tells us that

A) spreading an investment across many diverse assets will eliminate some of the total risk B) concentrating an investment in two or three large stocks will eliminate all of the unsystematic risk
C) spreading an investment across five diverse companies will not lower the total risk D) concentrating an investment in three companies all within the same industry will greatly reduce the systematic risk
 
Answer & Explanation Answer: A) spreading an investment across many diverse assets will eliminate some of the total risk

Explanation:

The principle of diversification tells us that spreading an investment across many diverse assets will eliminate some of the total risk.

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Filed Under: Accounts Receivable
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Job Role: Analyst , Bank Clerk , Bank PO

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