Match the Term and Its Definition

question 117

Multiple Choice

Match the term and its definition.There are more definitions than terms.
-Allowance Method

• A)The total amount of money loaned through notes that the lender has not yet collected.
• B)A system used by companies to allocate their budgets over the different operating expenses.
• C)The interest that a company receives during the year divided by the principal of the loan.
• D)Another name for a company's total revenue,which is calculated by multiplying the quantity sold by the average price.
• E)The denominator of the receivables turnover ratio.
• F)The amount of interest a lender receives during a year.
• G)The costs of maintaining accounts with customers who have not made recent purchases.
• H)A separate record for each accounts receivable customer.
• I)Used by the percentage of credit sales method to estimate bad debts.
• J)The rate at which a company pays off its liabilities or debts.
• K)The numerator of the receivables turnover ratio.
• L)The portion of past credit sales that have not yet been collected.
• M)An accounting method which involves estimating bad debts.
• N)The average level of net sales revenue the firm earns each month.

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Definitions:

Unlevered Cost

The cost of an investment or project without taking into account the effect of borrowed funds, often used to assess the project's risk without financing impact.

Equity

Equity refers to the ownership interest in a company, represented by the shares held by investors.

Synergistic Gains

Refers to the additional value created by combining two or more companies or entities, beyond what they could achieve individually.

Market Values

The existing rate at which an asset or service is being offered for buying or selling.