Match the Term and Its Definition

question 229

Multiple Choice

Match the term and its definition.There are more definitions than terms.
-Net Realizable Value

• 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.

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Definitions:

Accounts Receivable Balance

The cumulative financial obligation customers have towards a company for goods or services received but not yet remunerated.

Accounts Receivable Balance

The total amount of money owed to a company by its customers for goods or services delivered on credit.

Source Of Cash

Refers to activities or transactions that increase the cash balance, including operating activities, financing, and investing.

Credit Restrictions

Refers to the limitations imposed by lenders on the amount of credit extended to borrowers to manage risk.