Solved

Match Each of the Appropriate Definitions with Correct Term

Question 218

Matching

Match each of the appropriate definitions with correct term.

Premises:

Responses:

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

Payee of a note

The amount expected to be received.

Promissory note

A written promise to pay a specified amount of money, usually with interest, either on demand or at a definite future date.

Realizable value

Amounts due from customers for credit sales.

Expense recognition principle

The uncollectible accounts of credit customers who do not pay what they have promised.

Accounts receivable

The party to whom the promissory note is payable.

Allowance for doubtful accounts

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.

Bad debts

The charge a borrower pays for using money borrowed.

Maker of a note

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

Interest

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

Aging of accounts receivable

Premises:

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

The amount expected to be received.

A written promise to pay a specified amount of money, usually with interest, either on demand or at a definite future date.

Amounts due from customers for credit sales.

The uncollectible accounts of credit customers who do not pay what they have promised.

The party to whom the promissory note is payable.

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.

The charge a borrower pays for using money borrowed.

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.

Responses:

Payee of a note

Promissory note

Realizable value

Expense recognition principle

Accounts receivable

Allowance for doubtful accounts

Bad debts

Maker of a note

Interest

Aging of accounts receivable

Correct Answer:

Premises:

Responses:

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

The amount expected to be received.

A written promise to pay a specified amount of money, usually with interest, either on demand or at a definite future date.

Amounts due from customers for credit sales.

The uncollectible accounts of credit customers who do not pay what they have promised.

The party to whom the promissory note is payable.

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.

The charge a borrower pays for using money borrowed.

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.