Match the Following Terms with Their Definitions

question 48

Multiple Choice

Match the following terms with their definitions.
-Exact interest

• A)360 days
• B)Principal times rate times time
• C)Cost of borrowing
• D)365 days
• E)Result of applying the U.S. rule
• F)Maturity value
• G)Partial payment must be applied to interest first
• H)Amount due on due date
• I)Amount of money borrowed
• J)Consumer groups against it

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Definitions:

Conservatism

An accounting principle that requires potential expenses and liabilities to be recognized immediately, but revenue only when it is ensured.

Chapter 7 Bankruptcy

A type of bankruptcy that involves the liquidation of a debtor's assets to repay creditors, under the U.S. Bankruptcy Code.

Free Assets

Assets that are not encumbered by any liens or claims, available to be used or sold freely by the owner.

Net Realizable Value

The estimated selling price of goods minus the costs of their sale or disposal.