8 When a note receivable is dishonored Accounts Receivable i

8. When a note receivable is dishonored, Accounts Receivable is debited for what amount a. the face value plus accrued interest b the maturity value of the note less accrued interest c. the face value of the note d. the maturity value of the note plus accrued interest refers to an intangible asset of a business that is created from such favorable factors as location, product quality, reputation and managerial skill. a- patent b. copyrightc.goodwill d. trademark 10. Pixel Copies recorded a cash collection on account by debiting Cash and crediting Accounts payable. What will the trial balance show for this error? a. Too much for cash c. Too much for liabilities b. Too much for expenses d·The trial balance will not balance

Solution

8) Answer : a. the face value plus accrued interest (on dishonour all the face value and the interest due on maturity got to be debited again as Accounts Receivable)

9) Answer : c. goodwill ( the intangible asset created of reputation and managerial skill is goodwill or fame)

10) Answer : c. Too much for liabilities (the trial shows balanced situation but instead of reducing AR we have increased liabilities ie. AP, so it shows \"too much for liabilities)