Match the Items Below by Entering the Appropriate Code Letter

question 184

Short Answer

Match the items below by entering the appropriate code letter in the space provided.
A. Aging of receivables
B. Direct write-off method
C. Promissory note
D. Trade receivables
E. Percentage of sales basis
F. Percentage of receivables basis
G. Factoring
H. Dishonored note
I. Average collection period
J. Credit card sales
1. A written promise to pay a specified amount on demand or at a definite time.
2. Sales that involve the customer, the retailer, and the credit card issuer.
3. Emphasizes the matching of costs and revenues in the same period.
4. Amounts owed by customers from the sale of goods and services.
5. A note which is not paid in full at maturity.
6. Analysis of customer account balances by length of time they have been unpaid.
7. Emphasizes expected cash realizable value of accounts receivable.
8. Generally not acceptable for financial reporting purposes.
9. The amount of time that a receivable is outstanding.
10. Sale of accounts receivable to a factor.

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing the ownership interest of the shareholders.

Sales

The total amount of goods or services sold by a company within a specific period, generating revenue.

Traceable Fixed Expenses

Fixed costs that can be directly linked to a specific business segment, department, or product and would disappear if the segment was eliminated.

Variable Expenses

Costs that change in proportion to business activity or production volume, such as materials costs, direct labor, and utilities for machinery.