Match the Terms with the Definitions

question 42

Multiple Choice

Match the terms with the definitions.
-A loss from failure to collect an account receivable.

• 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:

Payout Ratios

Payout ratios indicate the proportion of earnings a company pays to its shareholders in the form of dividends, usually expressed as a percentage of net income.

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings (EPS), used to evaluate if a stock is under or overvalued.

Percentage Change

Percentage change refers to the measure of the degree of change over time, calculated as the difference between two values divided by the original value, times 100.

Base Year

A specific year against which economic or financial indices are measured to track changes and trends over time.