Receivables and Payables MCQs 2026

Receivables-payables scenario 8: a Pakistani hospital supplies vendor must correctly handle credit terms enforcement

1. A ignore the transaction until next fiscal year ✓
2. B debit and credit both affected so the equation stays balanced ✓
3. C record only one side of the entry ✓
4. D post directly to retained earnings without analysis ✓

Receivables-payables scenario 28: a Pakistani wholesale distributor must correctly handle valuation method choice

1. A apply consistent cost formula per applicable standard ✓
2. B ignore the transaction until next fiscal year ✓
3. C record only one side of the entry ✓
4. D post directly to retained earnings without analysis ✓

Accounts receivable in accounting refers to

1. A analysis of receivables by age brackets ✓
2. B amounts owed by customers ✓
3. C discount for payment within specified days ✓
4. D formal written promise to pay supplier ✓

Accounts payable in accounting refers to

1. A conditions such as net 30 or 2/10 n/30 ✓
2. B formal written promise to pay by customer ✓
3. C suppliers for goods and services on credit ✓
4. D amounts owed to suppliers ✓

Allowance for bad debts in accounting refers to

1. A discount for payment within specified days ✓
2. B formal written promise to pay supplier ✓
3. C contra asset for estimated uncollectible accounts ✓
4. D time between paying suppliers and collecting from customers ✓

Aging schedule in accounting refers to

1. A formal written promise to pay by customer ✓
2. B analysis of receivables by age brackets ✓
3. C suppliers for goods and services on credit ✓
4. D amounts owed by customers ✓

Credit terms in accounting refers to

1. A formal written promise to pay supplier ✓
2. B conditions such as net 30 or 2/10 n/30 ✓
3. C time between paying suppliers and collecting from customers ✓
4. D amounts owed to suppliers ✓

Early payment discount in accounting refers to

1. A discount for payment within specified days ✓
2. B suppliers for goods and services on credit ✓
3. C amounts owed by customers ✓
4. D contra asset for estimated uncollectible accounts ✓

Bill receivable in accounting refers to

1. A formal written promise to pay by customer ✓
2. B time between paying suppliers and collecting from customers ✓
3. C amounts owed to suppliers ✓
4. D analysis of receivables by age brackets ✓

Bill payable in accounting refers to

1. A amounts owed by customers ✓
2. B formal written promise to pay supplier ✓
3. C contra asset for estimated uncollectible accounts ✓
4. D conditions such as net 30 or 2/10 n/30 ✓

Trade creditors in accounting refers to

1. A suppliers for goods and services on credit ✓
2. B amounts owed to suppliers ✓
3. C analysis of receivables by age brackets ✓
4. D discount for payment within specified days ✓

Working capital cycle in accounting refers to

1. A contra asset for estimated uncollectible accounts ✓
2. B conditions such as net 30 or 2/10 n/30 ✓
3. C formal written promise to pay by customer ✓
4. D time between paying suppliers and collecting from customers ✓