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

question 183

Multiple Choice

Match each description to the appropriate term (a-d) . Each term may be used more than once.
-This method is most often used by small companies with few receivables.

• A)Direct write-off method
• B)Aging of receivables method
• C)Percent of sales method
• D)Allowance method

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Definitions:

N Th

Referring to an unspecified member of a series or set.

Increasing Annuity

An annuity payment plan where the payment amounts increase over time.

Compounded Monthly

A method of interest calculation where the interest earned is added to the principal sum each month, causing the interest to grow exponentially over time.

Principal

The initial amount of money deposited or loaned, before interest is added or charged.