Match the Term and Its Definition

question 169

Multiple Choice

Match the term and its definition.There are more definitions than terms.
-Credit Terms

• A)The process of removing specific customers' accounts deemed uncollectible.
• B)When a company increases the amount of accounts receivable by adding the interest earned as accounts age without being collected.
• C)How much money you can expect to earn over a period of time selling your goods.
• D)Selling accounts receivable to another company for immediate cash.
• E)Credit that a company receives when one good is exchanged for another.
• F)Also known as net accounts receivable.
• G)The length of the credit period and any discounts offered for prompt payment.
• H)The amount of money lent.
• I)A method of estimating uncollectible debts by forecasting the probability of not collecting late accounts.
• J)The interest earned by money over a period of time.
• K)A method of estimating uncollectible debts by looking at the historical average of credit sales not collected.
• L)The account in which the estimated amount of accounts receivable expected to be uncollectible is recorded.

---

Definitions:

Merchantable Food

Food products that meet the minimum quality standards set by law, making them fit for sale or consumption.

Fit to Eat

Safe and suitable for consumption as food without posing any health risk.

Reasonable Expectations

The anticipation of benefits, actions, or conditions based on what an ordinary person would consider fair under specific circumstances.

Inconsistent Warranties

Situations where the guarantees or assurances provided on products or services conflict with each other.