Matching
Match each of appropriate definitions with correct terms.
Premises:
Amounts owed by customers from credit sales for which payment is required in periodic payments over an extended period of time.
A measure of both the quality and liquidity of accounts receivable that indicates how often, on average, receivables are received and collected during the period.
A method of accounting for bad debts that records the loss from an uncollectible account receivable immediately upon determining it is uncollectible.
Selling all or a portion of accounts receivable to a finance company or bank.
A method of accounting for bad debts that matches the estimated loss from uncollectible accounts receivable against the sales they helped to produce.
The accounting principle that requires financial statements (including the notes)to report all relevant information about operations and financial condition.
Committing accounts receivable as security for a loan.
The accounting constraint that states that an amount can be ignored if its effect on the financial statements is unimportant to its users.
The amount that the signer of a note agrees to pay back when the note matures, not including interest.
Refers to a note maker's inability or refusal to pay a note at maturity.
Responses:
Installment accounts receivable
Full disclosure principle
Principal of a note
Factoring accounts receivable
Materiality constraint
Dishonoring a note
Pledging accounts receivable
Allowance method
Accounts receivable turnover
Direct write-off method
Correct Answer:
Premises:
Responses:
Amounts owed by customers from credit sales for which payment is required in periodic payments over an extended period of time.
A measure of both the quality and liquidity of accounts receivable that indicates how often, on average, receivables are received and collected during the period.
A method of accounting for bad debts that records the loss from an uncollectible account receivable immediately upon determining it is uncollectible.
Selling all or a portion of accounts receivable to a finance company or bank.
A method of accounting for bad debts that matches the estimated loss from uncollectible accounts receivable against the sales they helped to produce.
The accounting principle that requires financial statements (including the notes)to report all relevant information about operations and financial condition.
Committing accounts receivable as security for a loan.
The accounting constraint that states that an amount can be ignored if its effect on the financial statements is unimportant to its users.
The amount that the signer of a note agrees to pay back when the note matures, not including interest.
Refers to a note maker's inability or refusal to pay a note at maturity.
Premises:
Amounts owed by customers from credit sales for which payment is required in periodic payments over an extended period of time.
A measure of both the quality and liquidity of accounts receivable that indicates how often, on average, receivables are received and collected during the period.
A method of accounting for bad debts that records the loss from an uncollectible account receivable immediately upon determining it is uncollectible.
Selling all or a portion of accounts receivable to a finance company or bank.
A method of accounting for bad debts that matches the estimated loss from uncollectible accounts receivable against the sales they helped to produce.
The accounting principle that requires financial statements (including the notes)to report all relevant information about operations and financial condition.
Committing accounts receivable as security for a loan.
The accounting constraint that states that an amount can be ignored if its effect on the financial statements is unimportant to its users.
The amount that the signer of a note agrees to pay back when the note matures, not including interest.
Refers to a note maker's inability or refusal to pay a note at maturity.
Responses:
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