USCPA练习题精选：FAR 66

1.  Gar Co. factored its receivables without recourse with Ross Bank. Gar received cash as a result of this transaction, which is best described as a:

a.Sale of Gar's accounts receivable to Ross, with the risk of uncollectible accounts retained by Gar.

b.Loan from Ross to be repaid by the proceeds from Gar's accounts receivable.

c.Sale of Gar's accounts receivable to Ross, with the risk of uncollectible accounts transferred to Ross.

d.Loan from Ross collateralized by Gar's accounts receivable.

答案：C

Explanation

Choice "c" is correct. Factoring receivables without recourse is a sales transaction. Factoring without recourse transfers the risk of uncollectible accounts to the buyer. ASC 310-10-05-6

Choice "d" is incorrect. Pledging receivables is the process of obtaining a loan using the receivables as collateral.

Choice "b" is incorrect. Assigning receivables is the process of obtaining a loan by transferring to the lender the debtor's right to cash collected on receivables.

Choice "a" is incorrect. Factoring receivables may be treated as a sales transaction. Factoring with recourse leaves the risk of uncollectible accounts with the seller. ASC 310-10-05-6

2.  On Merf's April 30, 1993, balance sheet a note receivable was reported as a noncurrent asset and its accrued interest for eight months was reported as a current asset. Which of the following terms would fit Merf's note receivable?

a.Principal and interest are due December 31, 1993.

b.Principal is due August 31, 1994, and interest is due August 31, 1993, and August 31, 1994.

c.Both principal and interest amounts are payable on December 31, 1993, and December 31, 1994.

d.Both principal and interest amounts are payable on August 31, 1993, and August 31, 1994.

答案：B

Explanation

Choice "b" is correct, principal is due August 31, 1994 (more than one year after the balance sheet date of April 30, 1993, on which it was reported as a noncurrent asset), and interest is due August 31, 1993, (since the accrued interest for eight months was reported as a current asset due within one year of the balance sheet date), and interest is due August 31, 1994, for the one year from Sept. 1, 1993, to August 31, 1994.

Choice "d" is incorrect. Noncurrent principal at April 30, 1993 must be due after April 30, 1994.

Choice "a" is incorrect. Noncurrent principal at April 30, 1993 must be due after April 30, 1994, and current interest must be paid before April 30, 1994.

Choice "c" is incorrect. Noncurrent principal at April 30, 1993 must be due after April 30, 1994, and current interest must be paid before April 30, 1994.

3.  Red Co. had $3 million in accounts receivable recorded on its books. Red wanted to convert the $3 million in receivables to cash in a more timely manner than waiting the 45 days for payment as indicated on its invoices. Which of the following would alter the timing of Red's cash flows for the $3 million in receivables already recorded on its books?

a.Discount the receivables outstanding.

b.Factor the receivables outstanding.

c.Demand payment from customers before the due date.

d.Change the due date of the invoice.

答案：B

Explanation

Choice "b" is correct. Factoring receivables is the process by which a company converts its receivables to cash by assigning them to a factor, either with or without recourse.

Choice "d" is incorrect. The fact that the receivables have been recorded implies that the company has already sent invoices to its customers setting the payment due date. Generally, the due date cannot be changed after the invoice has been sent, nor is changing the due date likely to speed up the overall customer payment rate.

Choice "a" is incorrect. Discounting is the process of converting notes receivable, not accounts receivable, to cash.

Choice "c" is incorrect. Demanding payment from customers before the due date is likely to anger customers, but is not likely to speed up the overall customer payment rate. The invoice sets the payment terms of the receivable.

4.  On December 31, Year 1, Paxton Co. had a note payable due on August 1, Year 2. On January 20, Year 2, Paxton signed a financing agreement to borrow the balance of the note payable from a lending institution to refinance the note. The agreement does not expire within one year, and no violation of any provision in the financing agreement exists. On February 1, Year 2, Paxton was informed by its financial advisor that the lender is not expected to be financially capable of honoring the agreement. Paxton's financial statements were issued on March 31, Year 2. How should Paxton classify the note on its balance sheet at December 31, Year 1?

a.As a current liability because the lender is not expected to be financially capable of honoring the agreement.

b.As a long-term liability because no violation of any provision in the financing agreement exists.

c.As a current liability because the financing agreement was signed after the balance sheet date.

d.As a long-term liability because the agreement does not expire within one year.

答案：A

Explanation

Choice "a" is correct. A short-term obligation may be excluded from current liabilities and included in non-current debt if the company has both the intent and the ability to refinance the debt on a long-term basis, as evidenced by an actual refinancing before the issuance of the financial statements, or by the existence of a noncancelable financing agreement from a lender with the financial resources to accomplish the refinancing. Because Paxton's lender does not have the financial resources to accomplish the refinancing, the note must be reported as a current liability on its December 31, Year 1 balance sheet.

Choices "c", "d", and "b" are incorrect for the reason described above.

5.  Which of the following methods of determining bad debt expense does not properly match expense against revenue?

a.Charging bad debts with a percentage of accounts receivable under the allowance method.

b.Charging bad debts as accounts are written off as uncollectible.

c.Charging bad debts with an amount derived from aging accounts receivable under the allowance method.

d.Charging bad debts with a percentage of sales under the allowance method.

答案：B

Explanation

Choice "b" is correct. The direct write-off method of handling bad debts is a violation of the matching principle.

Choices "d", "a", and "c" are incorrect as they describe alternative GAAP methods to account for bad debts. Each of these methods properly matches expense against revenue.