||(L.O. 1 thru 9) This exercise will quiz you about terminology used in this chapter.
A list of accounting terms with which you should be familiar appears below.
|Accounts receivable turnover ratio
|Aging the accounts receivable
|Allowance for doubtful accounts
|Average collection period
|Bad Debt Expense
|Cash (net) realizable value
|Direct write-off method
For each item below, enter in the blank the term that is described.
- _____________________Amounts due from individuals and other companies.
- _____________________Amounts owed by customers on account.
- _____________________Claims for which formal instruments of credit are issued as proof of the debt.
- _____________________Various forms of nontrade receivables, such as interest receivable and income taxes refundable.
- _____________________The analysis of customer balances by the length of time they have been unpaid.
- _____________________Management establishes a percentage relationship between the expected losses from uncollectible accounts and the amount of receivables.
- _____________________Management establishes a percentage relationship between expected losses from uncollectible accounts and the amount of credit sales.
- _____________________The net amount expected to ...