Matching
Match of the following.
Premises:
Analysis of customer account balances by length of time they have been unpaid.
A written promise to pay a specified amount on demand or at a definite time.
Sales that involve the customer, the retailer, and the credit card issuer.
Amounts owed by customers from the sale of goods and services.
The amount of time that a receivable is outstanding.
Emphasizes expected cash realizable value of accounts receivable.
Sale of accounts receivable to a factor.
A note which is not paid in full at maturity.
Generally not acceptable for financial reporting purposes.
Emphasizes the matching of costs and revenues in the same period.
Responses:
Trade receivables
Promissory note
Direct write-off method
Average collection period
Percentage of sales basis
Percentage of receivables basis
Aging of receivables
Credit card sales
Factoring
Dishonored note
Correct Answer:
Premises:
Responses:
Analysis of customer account balances by length of time they have been unpaid.
A written promise to pay a specified amount on demand or at a definite time.
Sales that involve the customer, the retailer, and the credit card issuer.
Amounts owed by customers from the sale of goods and services.
The amount of time that a receivable is outstanding.
Emphasizes expected cash realizable value of accounts receivable.
Sale of accounts receivable to a factor.
A note which is not paid in full at maturity.
Generally not acceptable for financial reporting purposes.
Emphasizes the matching of costs and revenues in the same period.
Premises:
Analysis of customer account balances by length of time they have been unpaid.
A written promise to pay a specified amount on demand or at a definite time.
Sales that involve the customer, the retailer, and the credit card issuer.
Amounts owed by customers from the sale of goods and services.
The amount of time that a receivable is outstanding.
Emphasizes expected cash realizable value of accounts receivable.
Sale of accounts receivable to a factor.
A note which is not paid in full at maturity.
Generally not acceptable for financial reporting purposes.
Emphasizes the matching of costs and revenues in the same period.
Responses:
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