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- Name – Quiz 13 – Accounts Receivable- (Answers)
- Topic – Accounts Receivable
- Answers with Explanation
Q1. Accounts receivable is _____.
Ans. It is a company’s short-term collectable i.e. the total amount yet to be received from the debtors.
Q2. Accounts receivable are shown on _____.
Ans. Accounts receivable are shown on the asset side of a balance sheet.
Q3. Accounts receivable are recorded in _____.
Ans. A sales book is a special-purpose subsidiary book kept by a business for recording all credit sales.
Q4. Accounts receivable is the amount to be collected from _____.
Ans. Basically, it is the amount which the business has to receive from its debtors.
Q5. Accounts receivable is a _____ asset.
Ans. Accounts receivable is a (short-term) current asset for the business.
Q6. Accounts receivable is the money collectable because of _____.
Ans. Accounts receivable are collectable of a business that originate because of sales made on credit e.g. sale of goods & services.
Q7. ‘Accounts Receivable A/C’ is _____ when the sale is recorded.
Ans. When the credit sale is recorded the company’s accounts receivable increase. In such a case ‘Accounts Receivable A/C’ is debited. Rule – Debit the increase in an asset.
Q8. ‘Accounts Receivable A/C’ is _____ when money is received from the customer.
Ans. When money is received from a customer the accounts receivable are reduced, therefore ‘accounts receivable’ account is credited. Rule – credit the decrease in an asset.
Q9. Accounts receivable is also called _____.
Ans. Accounts receivable are also known as trade receivable.
Q10. Accounts receivable usually have _____ balance.
Ans. Accounts receivable being an asset have a debit balance.
Q11. Sales ledger control account (SLCA) is _____.
Ans. Also known as the “Trade Debtor Control A/C,” the Sales Ledger Control Account shows the total trade debtors of a company at a particular point in time. In simple words ‘total of Accounts Receivable’.