Match the Terms with the Definitions

question 72

Multiple Choice

Match the terms with the definitions.
-The process of estimating the uncollectible amount by analyzing account balances according to the length of time the accounts have been outstanding.

• 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:

Previous Year's Performance

An analysis of financial or operational results from the preceding year, often used as a benchmark for current performance.

Measuring Competitiveness

The evaluation of a company's ability to compete in the market, based on factors like price, quality, and innovation.

Market Ratios

Financial metrics used to evaluate the market value of a company’s shares, including price-to-earnings and market-to-book ratios.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity used to finance its overall operations and growth.