Financial and Managerial Accounting Study Set 1

Business

Quiz 4 :
Completing the Accounting Cycle

bookmark
Unbookmark

Quiz 4 :
Completing the Accounting Cycle

No, it is not acceptable. Trade receivables are the receivables that became receivable in the course of business. But this is the case of a loan provided to an official of the company. So this is a loan and not a trade account receivable. It should be disclosed as a loan. Current asset lists out the items which shall be liquidated in the next year. But this loan is not recovered in a year so it is a long term item and not a current asset. Also there should be a proper document for this loan. Providing loan on the oral assurance is not a good business practice. There should be a proper note regarding non-recovery of amount in a whole year.

There is no answer for this question

There is no answer for this question

There is no answer for this question

There is no answer for this question

There is no answer for this question

There is no answer for this question

There is no answer for this question

There is no answer for this question

There is no answer for this question

Related Quizzes