Solved

Match Each of the Following Terms with the Appropriate Definition

Question 175

Matching

Match each of the following terms with the appropriate definition:

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

Correct Answer:

Aging of accounts receivable
Bad debts
Interest
Net realizable value
Maker of a note
Accounts receivable
Payee of a note
Matching principle
Allowance for doubtful accounts
Promissory note
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