Matching
Match each of the following terms with the appropriate definition:
Premises:
The accounting constraint that states that an amount can be ignored if its effect on the financial statements is not important to their users.
One who signs a note and promises to pay it at maturity.
The accounting principle that requires the financial statements (including the notes) to report all relevant information about operations and financial condition.
The amount that the signer of a note agrees to pay back when the note matures, not including interest.
A method of accounting for bad debts that matches the estimated loss from uncollectible accounts receivable against the sales they helped to produce.
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.
A buyer of accounts receivable who charges the seller a fee and then receives cash from the receivables as they come due.
Refers to a note maker’s inability or refusal to pay the note at maturity.
A method of accounting for bad debts that records the loss from an uncollectible account receivable when it is determined to be uncollectible.
Amounts owed by customers from credit sales for which payment is required in periodic payments over an extended period of time.
Responses:
Full disclosure principle.
Principal of a note
Direct write-off
Installment accounts receivable
Dishonoring a note
Accounts receivable turnover
Maker of a note
Materiality constraint
Factor
Allowance method
Correct Answer:
Premises:
Responses:
The accounting constraint that states that an amount can be ignored if its effect on the financial statements is not important to their users.
One who signs a note and promises to pay it at maturity.
The accounting principle that requires the financial statements (including the notes) to report all relevant information about operations and financial condition.
The amount that the signer of a note agrees to pay back when the note matures, not including interest.
A method of accounting for bad debts that matches the estimated loss from uncollectible accounts receivable against the sales they helped to produce.
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.
A buyer of accounts receivable who charges the seller a fee and then receives cash from the receivables as they come due.
Refers to a note maker’s inability or refusal to pay the note at maturity.
A method of accounting for bad debts that records the loss from an uncollectible account receivable when it is determined to be uncollectible.
Amounts owed by customers from credit sales for which payment is required in periodic payments over an extended period of time.
Premises:
The accounting constraint that states that an amount can be ignored if its effect on the financial statements is not important to their users.
One who signs a note and promises to pay it at maturity.
The accounting principle that requires the financial statements (including the notes) to report all relevant information about operations and financial condition.
The amount that the signer of a note agrees to pay back when the note matures, not including interest.
A method of accounting for bad debts that matches the estimated loss from uncollectible accounts receivable against the sales they helped to produce.
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.
A buyer of accounts receivable who charges the seller a fee and then receives cash from the receivables as they come due.
Refers to a note maker’s inability or refusal to pay the note at maturity.
A method of accounting for bad debts that records the loss from an uncollectible account receivable when it is determined to be uncollectible.
Amounts owed by customers from credit sales for which payment is required in periodic payments over an extended period of time.
Responses:
Related Questions
Q145: Myrex Corporation purchased $4,000 in merchandise from
Q159: The _ methods use balance sheet relationships
Q162: The _ method uses income statement relationships
Q167: Match each of the following terms with
Q169: Match the following definitions to their terms
Q170: Match the following definitions to their terms
Q203: The _ method uses both past and
Q209: _ are amounts owed by customers from
Q211: The_ method of accounting for bad debts
Q215: When the maker of a note is
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents