1)The allowance for doubtful accounts is reported as a contra-asset on the balan

Question

1)The allowance for doubtful accounts is reported as a contra-asset on the balance sheet

Select one:

True

False

2)When goods are shipped FOB destination, the revenue from the sale is recognized on the shipment date.

Select one:

True

False

3)Tangible long-lived productive assets differ from intangible long-lived productive assets in that tangible assets have physical substance whereas intangible assets have no physical substance.

Select one:

True

False

4)Treasury stock is a corporation's own stock that was issued and then repurchased, and is still held by the corporation.

Select one:

True

False

Explanation / Answer

1)True, The allowance for doubtful accounts is reported as a contra-asset on the balance sheet beacuse it offset against Account Recivable account shown in the balancesheet.

2)Fales, When goods are shipped FOB destination, the revenue from the sale is recognized on the shipment date.

Because, Good shipped FOB destination means tittle, ownership and any type of risk will be borne by seller and sales will be recognised once the goods reashed at destination.

3)True, Tangible long-lived productive assets differ from intangible long-lived productive assets in that tangible assets have physical substance whereas intangible assets have no physical substance.

Beacause tangible can easliy be touch and see the physcal present and avialibility of asset while contrary in case of Intangible Asset.

4)True, Treasury stock is a corporation's own stock that was issued and then repurchased, and is still held by the corporation.

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