Matching
Match each definition to its term
Premises:
The accounting principle that states that an amount can be ignored if its effect on the financial statements is not important to their users
Amounts owed by customers from credit sales for which payment is required in periodic payments over an extended period of time
A buyer of accounts receivable who charges the seller a fee and then receives cash from the receivables as they come due
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 the financial statements (including the notes) to report all relevant information about operations and financial condition
A method of accounting for bad debts that records the loss from an uncollectible account receivable when it is determined to be uncollectible
One who signs a note and promises to pay it at maturity
The amount that the signer of a note agrees to pay back when the note matures, not including interest
Refers to a note maker inability or refusal to pay the note at maturity
A measure of both the quality and liquidity of accounts receivable. It indicates how often, on average, receivables are received and collected during the period
Responses:
Accounts receivable turnover
Installment accounts receivable
Materiality principle
Dishonoring a note
Allowance method
Factor
Full disclosure principle
Maker of a note
Direct write-off
Principal of a note
Correct Answer:
Premises:
Responses:
The accounting principle that states that an amount can be ignored if its effect on the financial statements is not important to their users
Amounts owed by customers from credit sales for which payment is required in periodic payments over an extended period of time
A buyer of accounts receivable who charges the seller a fee and then receives cash from the receivables as they come due
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 the financial statements (including the notes) to report all relevant information about operations and financial condition
A method of accounting for bad debts that records the loss from an uncollectible account receivable when it is determined to be uncollectible
One who signs a note and promises to pay it at maturity
The amount that the signer of a note agrees to pay back when the note matures, not including interest
Refers to a note maker inability or refusal to pay the note at maturity
A measure of both the quality and liquidity of accounts receivable. It indicates how often, on average, receivables are received and collected during the period
Premises:
The accounting principle that states that an amount can be ignored if its effect on the financial statements is not important to their users
Amounts owed by customers from credit sales for which payment is required in periodic payments over an extended period of time
A buyer of accounts receivable who charges the seller a fee and then receives cash from the receivables as they come due
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 the financial statements (including the notes) to report all relevant information about operations and financial condition
A method of accounting for bad debts that records the loss from an uncollectible account receivable when it is determined to be uncollectible
One who signs a note and promises to pay it at maturity
The amount that the signer of a note agrees to pay back when the note matures, not including interest
Refers to a note maker inability or refusal to pay the note at maturity
A measure of both the quality and liquidity of accounts receivable. It indicates how often, on average, receivables are received and collected during the period
Responses:
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