Adding Non-Postable Accounts to Your Chart of Accounts -

question 15

Multiple Choice

Adding non-postable accounts to your Chart of Accounts -

• A)allows you to separate your postable accounts
• B)will allow you to classify your accounts with formal accounting headings
• C)will allow you to balance your chart of accounts
• D)non-postable accounts are not required

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Definitions:

Materiality Constraint

An accounting principle that allows for the ignoring of accounting information that would not impact users’ decision-making due to its insignificance.

Factoring Accounts Receivable

The financial practice of selling accounts receivable to a third party at a discount to obtain immediate cash.

Installment Accounts Receivable

Receivables from sales where the customer makes regular payments over a period until the full purchase price is paid.

Dishonoring a Note

The failure to pay a promissory note when it comes due, resulting in a default.