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Match the Following Definitions with the Appropriate Term

Question 216

Matching

Match the following definitions with the appropriate term

Premises:
A measure of both the quality and liquidity of accounts receivable that indicates how often, on average, receivables are received and collected during the period.
Amounts owed by customers from credit sales for which payment is required in periodic payments over an extended period of time.
The accounting constraint that states that an amount can be ignored if its effect on the financial statements is unimportant to its users.
Refers to a note maker's inability or refusal to pay a note at maturity.
A method of accounting for bad debts that matches the estimated loss from uncollectible accounts receivable against the sales they helped to produce.
Selling all or a portion of accounts receivable to a finance company or bank.
The accounting principle that requires financial statements (including the notes to report all relevant information about operations and financial condition.
Committing accounts receivable as security for a loan.
A method of accounting for bad debts that records the loss from an uncollectible account receivable immediately upon determining it is uncollectible.
The amount that the signer of a note agrees to pay back when the note matures, not including interest.
Responses:
Allowance method
Installment accounts receivable
Principal of a note
Full disclosure principle
Materiality constraint
Direct write-off method
Dishonoring a note
Accounts receivable turnover
Factoring accounts receivable
Pledging accounts receivable

Correct Answer:

A measure of both the quality and liquidity of accounts receivable that indicates how often, on average, receivables are received and collected during the period.
Amounts owed by customers from credit sales for which payment is required in periodic payments over an extended period of time.
The accounting constraint that states that an amount can be ignored if its effect on the financial statements is unimportant to its users.
Refers to a note maker's inability or refusal to pay a note at maturity.
A method of accounting for bad debts that matches the estimated loss from uncollectible accounts receivable against the sales they helped to produce.
Selling all or a portion of accounts receivable to a finance company or bank.
The accounting principle that requires financial statements (including the notes to report all relevant information about operations and financial condition.
Committing accounts receivable as security for a loan.
A method of accounting for bad debts that records the loss from an uncollectible account receivable immediately upon determining it is uncollectible.
The amount that the signer of a note agrees to pay back when the note matures, not including interest.
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