Use the Following Two Columns of Items to Answer the Matching

question 40

Short Answer

Use the following two columns of items to answer the matching questions below:
-income method
A)uses annual income times a factor to arrive at the amount of life insurance needed
B)determines the life insurance amount needed based on a budget

• A)uses annual income times a factor to arrive at the amount of life insurance needed
• B)determines the life insurance amount needed based on a budget

Analyze and prepare adjusting entries for bad debt expense using the aging method and percentage of sales or receivables.

Identify and journalize transactions under the direct write-off method of accounting for uncollectible receivables.

Understand the concept and calculation of interest, maturity value, and terms related to notes receivable.

Recognize indicators that a receivable may be uncollectible.

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Definitions:

Restrictive Endorsement

An endorsement that limits the transferability of an instrument or controls the manner of payment under an instrument.

Transferability

The ease with which ownership rights of certain assets, securities, or financial instruments can be transferred from one party to another.

Holder in Due Course

A party that acquires a negotiable instrument in good faith and for value, thus obtaining certain rights free from previous defenses.

For Value

A legal consideration given as part of a contract or agreement, indicating that something of value was exchanged.