Match each description to the appropriate term (a-i).
-Measures how frequently during the year accounts receivable are being turned into cash
A)Accounts receivable turnover
B)Net realizable value
C)Accounts receivable
D)Aging the receivables
E)Receivables
F)Direct write-off method
G)Allowance for doubtful accounts
H)Bad debt expense
I)Notes receivable

Question

Quizplus · Accepted Answer

Accounts receivable turnover measures how frequently during the year accounts receivable are being turned into cash.

Answer: B 
 Net realizable value is the amount that accounts receivable are expected to turn into cash after an allowance for doubtful accounts has been taken into consideration.

Answer: C 
 Accounts receivable are amounts that are owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Answer: D 
 Aging the receivables is the process of classifying accounts receivable by the length of time they have been outstanding.

Answer: E 
 Receivables are amounts owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Answer: F 
 The direct write-off method is a method of accounting for bad debts in which the bad debt expense is recorded when an account is determined to be uncollectible.

Answer: G 
 The allowance for doubtful accounts is a contra account to accounts receivable that represents the portion of accounts receivable that is expected to be uncollectible.

Answer: H 
 Bad debt expense is the expense that is recognized when it is expected that a portion of accounts receivable will be uncollectible.

Answer: I 
 Notes receivable are written promises by customers to pay a fixed sum of money by a certain date in the future.

Match Each Description to the Appropriate Term (A-I)