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Match the Following Definitions with the Appropriate Terms

Question 170

Matching

Match the following definitions with the appropriate terms

Premises:

Responses:

The accounting principle that requires expenses to be reported in the same period as their related sales.

Accounts receivable

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.

Aging of accounts receivable

The cost a borrower incurs when taking out a loan; alternatively the profit from lending money for a lender.

Promissory note

A written promise to pay a specified amount either on demand or at a definite future date.

Net realizable value

The one to whom the promissory note is made payable.

Bad debts

One who signs a note and promises to pay it at maturity.

Matching principle

The expected proceeds from converting an asset into cash.

Interest

The accounts of customers who do not pay what they have promised to pay a company.

Allowance for doubtful accounts

A contra asset account with a balance approximating the amount of accounts receivable expected to be uncollectible.

Maker of a note

Amounts due from customers arising from credit sales.

Payee of a note

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.