INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

question 149

Multiple Choice

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.
-An [add-on | acceleration] clause allows the lender to demand repayment of the entire debt if the borrower defaults on his payments.

• A)for the first item
• B)for the second item
• C)if neither item will correctly complete the statement.

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Definitions:

Sales Revenue Approach

A method of recognizing revenue based on the sales transactions processed by a company.

Unadjusted Year End

This term refers to the financial results and statements of a company that have not gone through adjustments for various accounting entries at the end of the fiscal year.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals to ensure a company's bookkeeping system is mathematically correct.

Allowance for Uncollectibles

A contra-asset account used to reduce accounts receivable to its net realizable value by estimating the amount of receivables that may not be collected.