Matching
Match the term and the explanation.Not all explanations will be used.
Premises:
Annual interest rate
Average net trade receivables
Direct write-off method
Bad debt loss rate
Allowance method
Notes receivable
Accounts receivable
Net credit sales
Responses:
The historical average percentage of credit sales that a company has been unable to collect.
The average level of net sales revenue the firm earns each month.
Another name for a company's total revenue which is calculated by multiplying the quantity sold by the average price.
The interest that a company receives during the year divided by the principal of the loan.
A two-stage process by which accounts are adjusted in anticipation of bad debts.
An alternative method of recording Bad Debts expense only when specific customers are written off.
The rate at which a company pays off its liabilities or debts.
The costs of maintaining accounts with customers who have not made recent purchases.
The amount of interest a lender receives during a year.
A system used by companies to allocate their budgets over the different operating expenses.
The numerator of the receivables turnover ratio.
The total amount of money loaned through notes that have not been repaid.
The portion of past credit sales that have not yet been collected.
The denominator of the receivables turnover ratio.
Correct Answer:
Premises:
Responses:
The historical average percentage of credit sales that a company has been unable to collect.
The average level of net sales revenue the firm earns each month.
Another name for a company's total revenue which is calculated by multiplying the quantity sold by the average price.
The interest that a company receives during the year divided by the principal of the loan.
A two-stage process by which accounts are adjusted in anticipation of bad debts.
An alternative method of recording Bad Debts expense only when specific customers are written off.
The rate at which a company pays off its liabilities or debts.
The costs of maintaining accounts with customers who have not made recent purchases.
The amount of interest a lender receives during a year.
A system used by companies to allocate their budgets over the different operating expenses.
The numerator of the receivables turnover ratio.
The total amount of money loaned through notes that have not been repaid.
The portion of past credit sales that have not yet been collected.
The denominator of the receivables turnover ratio.
Premises:
The historical average percentage of credit sales that a company has been unable to collect.
The average level of net sales revenue the firm earns each month.
Another name for a company's total revenue which is calculated by multiplying the quantity sold by the average price.
The interest that a company receives during the year divided by the principal of the loan.
A two-stage process by which accounts are adjusted in anticipation of bad debts.
An alternative method of recording Bad Debts expense only when specific customers are written off.
The rate at which a company pays off its liabilities or debts.
The costs of maintaining accounts with customers who have not made recent purchases.
The amount of interest a lender receives during a year.
A system used by companies to allocate their budgets over the different operating expenses.
The numerator of the receivables turnover ratio.
The total amount of money loaned through notes that have not been repaid.
The portion of past credit sales that have not yet been collected.
The denominator of the receivables turnover ratio.
Responses:
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