Match Each Description to the Appropriate Term (A-I)

question 53

Multiple Choice

Match each description to the appropriate term (a-i) .
-Operating expense recorded as a result of receivables becoming uncollectible

• A)Accounts receivable turnover
• B)Net realizable value
• C)Accounts receivable
• D)Aging the receivables
• E)Receivables
• F)Direct write-off method
• G)Allowance for doubtful accounts
• H)Bad debt expense
• I)Notes receivable

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Definitions:

Receivable Turnover

A financial metric that measures how many times a company can turn its accounts receivable into cash during a period.

Inventory Turnover

A financial metric that measures how many times a company has sold and replaced its inventory over a certain period of time.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets, calculated as current assets divided by current liabilities.

Acid-test Ratio

A strict measure used to assess if a company possesses sufficient current assets to pay off its short-term obligations without the need to liquidate its stock.