Match the Items Below by Entering the Appropriate Code Letter

question 28

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. Cash (net) realizable value
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. The net amount a company expects to receive in cash.
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:

Analyzer Strategy

A business approach where a company carefully monitors its competitors' successful innovations and then follows suit, trying to improve upon them.

Strategy Formulation

The process of creating strategies, identifying the resources needed and the steps to be taken to achieve a specific organizational goal or objective.

Critical Component

An essential part or element of something that is vital for its proper functioning or effectiveness.

Salary Structure

The framework within an organization that defines the pay ranges for different positions or levels of responsibility.