Matching
Match the following definitions with the appropriate terms
Premises:
The accounting principle that requires expenses to be reported in the same period as their related sales.
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 cost a borrower incurs when taking out a loan; alternatively the profit from lending money for a lender.
A written promise to pay a specified amount either on demand or at a definite future date.
The one to whom the promissory note is made payable.
One who signs a note and promises to pay it at maturity.
The expected proceeds from converting an asset into cash.
The accounts of customers who do not pay what they have promised to pay a company.
A contra asset account with a balance approximating the amount of accounts receivable expected to be uncollectible.
Amounts due from customers arising from credit sales.
Responses:
Accounts receivable
Aging of accounts receivable
Promissory note
Net realizable value
Bad debts
Matching principle
Interest
Allowance for doubtful accounts
Maker of a note
Payee of a note
Correct Answer:
Premises:
Responses:
The accounting principle that requires expenses to be reported in the same period as their related sales.
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 cost a borrower incurs when taking out a loan; alternatively the profit from lending money for a lender.
A written promise to pay a specified amount either on demand or at a definite future date.
The one to whom the promissory note is made payable.
One who signs a note and promises to pay it at maturity.
The expected proceeds from converting an asset into cash.
The accounts of customers who do not pay what they have promised to pay a company.
A contra asset account with a balance approximating the amount of accounts receivable expected to be uncollectible.
Amounts due from customers arising from credit sales.
Premises:
The accounting principle that requires expenses to be reported in the same period as their related sales.
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 cost a borrower incurs when taking out a loan; alternatively the profit from lending money for a lender.
A written promise to pay a specified amount either on demand or at a definite future date.
The one to whom the promissory note is made payable.
One who signs a note and promises to pay it at maturity.
The expected proceeds from converting an asset into cash.
The accounts of customers who do not pay what they have promised to pay a company.
A contra asset account with a balance approximating the amount of accounts receivable expected to be uncollectible.
Amounts due from customers arising from credit sales.
Responses:
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