Accounting terminology Listed below are nine technical accounting terms emphasized in this chapter

Fair value accounting
Factoring
Direct write-off
Financial asset
Cash equivalent
Bank reconciliation
Allowance for doubtful accounts
Accounts receivable turnover
Uncollectible accounts expense

Each of the following statements may (or may not) describe one of these technical terms. In the space provided below each statement, indicate the accounting term described, or answer "None" if the statement does not correctly describe any of the terms.

______ a. A transaction in which a business sells its accounts receivables to a financial institution.
______ b. An estimate of the portion of year-end accounts receivable that ultimately will turn out to be uncollectible.
______ c. Schedule explaining any differences between cash balances appearing in the accounting records and in the monthly bank statement.
______ d. Balance sheet valuation standard applicable to investments in marketable securities.
______ e. Cash and assets convertible directly into known amounts of cash, such as marketable securities and receivables.
______ f. A ratio, computed by dividing 365 days by average receivables, that indicates the liquidity of the receivables.
______ g. Method of accounting for uncollectible receivables that fails to match revenues and expenses.

What will be an ideal response?

(a) Factoring, (b) Allowance for doubtful accounts, (c) Bank reconciliation (d) Fair value accounting, (e) Financial asset, (f) None (The accounts receivable turnover is computed by dividing net credit sales by average accounts receivable.), (g) Direct write-off