Solved

Match Each of the Appropriate Definitions with Correct Term

Question 21

Matching

Match each of the appropriate definitions with correct term .

Premises:
A contra asset account with a balance approximating the amount of accounts receivable expected to be uncollectible.
The uncollectible accounts of credit customers who do not pay what they have promised.
A process of classifying accounts receivable by how long it is past its due date for the purpose of estimating the amount of uncollectible accounts.
The accounting principle that requires expenses to be reported in the same period as the sales they helped to produce.
Amounts due from customers for credit sales.
A written promise to pay a specified amount of money, usually with interest, either on demand or at a definite future date.
The party who signs a note and promises to pay it at maturity.
The expected proceeds from converting an asset into cash.
The party to whom the promissory note is payable.
The charge a borrower pays for using money borrowed.
Responses:
Allowance for doubtful accounts
Payee of a note
Interest
Realizable value
Promissory note
Accounts receivable
Expense recognition (matching)principle
Maker of a note
Bad debts
Aging of accounts receivable

Correct Answer:

A contra asset account with a balance approximating the amount of accounts receivable expected to be uncollectible.
The uncollectible accounts of credit customers who do not pay what they have promised.
A process of classifying accounts receivable by how long it is past its due date for the purpose of estimating the amount of uncollectible accounts.
The accounting principle that requires expenses to be reported in the same period as the sales they helped to produce.
Amounts due from customers for credit sales.
A written promise to pay a specified amount of money, usually with interest, either on demand or at a definite future date.
The party who signs a note and promises to pay it at maturity.
The expected proceeds from converting an asset into cash.
The party to whom the promissory note is payable.
The charge a borrower pays for using money borrowed.
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