Solved

Match Each of the Following Terms with the Appropriate Definitions

Question 170

Matching

Match each of the following terms with the appropriate definitions.

Premises:

Responses:

The expected proceeds from converting an asset into cash.

Payee of a note

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

Maker of a note

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

Realizable value

The cost of borrowing money for a borrower,alternatively the profit from lending money for a lender.

Allowance for doubtful accounts

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

Bad debts

Amounts due from customers arising from credit sales.

Promissory note

The one to whom the promissory note is made payable.

Accounts receivable

The accounting principle that requires expenses to be reported in the same period as the sales they helped to produce.

Aging of accounts receivable

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

Interest

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.

Matching principle

Premises:

The expected proceeds from converting an asset into cash.

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

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

The cost of borrowing money for a borrower,alternatively the profit from lending money for a lender.

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 one to whom the promissory note is made payable.

The accounting principle that requires expenses to be reported in the same period as the sales they helped to produce.

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

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.

Responses:

Payee of a note

Maker of a note

Realizable value

Allowance for doubtful accounts

Bad debts

Promissory note

Accounts receivable

Aging of accounts receivable

Interest

Matching principle

Correct Answer:

Premises:

Responses:

The expected proceeds from converting an asset into cash.

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

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

The cost of borrowing money for a borrower,alternatively the profit from lending money for a lender.

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 one to whom the promissory note is made payable.

The accounting principle that requires expenses to be reported in the same period as the sales they helped to produce.

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

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.