3. Discuss the impropriety of accepting and listing I O U’s and due bills as cash.
4. How should the disposition of the various cash funds be shown when listing the cash items?
5. What rate of exchange should be used by the home office in valuing cash held in a foreign branch?
6. What is the important problem in valuing accounts and notes receivable?
7. Why is the title “accounts receivable” objectionable?
8. How may large losses from bad debts be avoided?
9. What relation does the percentage of loss from bad debts bear to the term of credit granted?
10. Explain how customers’ accounts are analyzed as a basis for estimating bad debts. When is such an analysis of value?
11. What three bases are used in estimating the percentage of bad debts? Give a criticism of each base.
12. What allowance should be made for discounts and collection costs when valuing the trade debtor’s accounts?