Match the following terms with the explanations below. If no term fits the explanation write none
_________ (1) A means of accounting for uncollectibles which does not recognize any expense until specific receivables are determined to be worthless.
_________ (2) An account showing the amount of estimated uncollectible receivables.
_________ (3) The process of estimating uncollectible accounts by classifying accounts receivables by age groups.
_________ (4) Dividing net sales by average receivables to create a ratio to measure the liquidity of accounts receivable.
_________ (5) Very short-term liquid investments which must mature within 90 days of acquisition.
_________ (6) Cash and assets convertible directly into known amounts of cash.
_________ (7) An account showing the difference between the cost of an investment in marketable securities and its market value.
_________ (8) The value of a note at its maturity date.
_________ (9) Highly
What will be an ideal response?
1.) Direct Write Off Method
(2.) Allowance for Doubtful Accounts
(3.) None
(4.) Accounts Receivable Turnover Rate
(5.) Cash Equivalents
(6.) Financial Assets
(7.) Unrealized Gain
(8.) None
(9.) Marketable Securities
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A) is issued by a global credit agency B) is the basis for multilateral credit netting C) can be amended only if all parties involved agree D) obligates the exporter's bank to pay interest to the importer