Solved

Match Each of the Following Terms with the Appropriate Definition

Question 167

Matching

Match each of the following terms with the appropriate definition:

Premises:

Responses:

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

Matching principle

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

Bad debts

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.

Interest

Amounts due from customers arising from credit sales.

Aging of accounts receivable

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

Net realizable value

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

Payee of a note

The expected proceeds from converting an asset into cash.

Accounts receivable

The one to whom the promissory note is made payable.

Promissory note

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

Maker of a note

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

Allowance for doubtful accounts.

Premises:

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

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

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.

Amounts due from customers arising from credit sales.

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.

The expected proceeds from converting an asset into cash.

The one to whom the promissory note is made payable.

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

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

Responses:

Matching principle

Bad debts

Interest

Aging of accounts receivable

Net realizable value

Payee of a note

Accounts receivable

Promissory note

Maker of a note

Allowance for doubtful accounts.

Correct Answer:

Premises:

Responses:

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

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

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.

Amounts due from customers arising from credit sales.

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.

The expected proceeds from converting an asset into cash.

The one to whom the promissory note is made payable.

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

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