Match the Terms with the Definitions

question 76

Multiple Choice

Match the terms with the definitions.
-A method in which the current year's uncollectible accounts are estimated based on the relationship between the amount of credit sales and the amount of uncollectible accounts in prior years.

• A)aging the receivables
• B)allowance method
• C)bad debt expense
• D)direct write-off method
• E)matching principle
• F)net receivables
• G)percentage of receivables method
• H)percentage of sales method

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Definitions:

Corporate Governance Requirements

Guidelines and rules that dictate how a company is operated and controlled, focusing on the relationship between the board, shareholders, and other stakeholders.

Public Company

A company whose shares are traded freely on a stock market, with disclosure of financials and other significant information to the public.

Federal Government

The Federal Government is the national government of a federation, responsible for governing the entire country and managing affairs that go beyond the jurisdiction of individual states or provinces.

Sarbanes-Oxley Act

In 2002, the United States passed a federal statute aimed at defending investors by advancing the veracity and trustworthiness of corporate disclosures.