Match Each Definition with the Correct Term Below

question 137

Multiple Choice

Match each definition with the correct term below.
-Accounts receivable aging method

• A)One way to control a cash fund and cash advances.
• B)A minimum amount that a bank requires a company to keep in its bank account as part of a credit-granting arrangement.
• C)The method of estimating uncollectible accounts that calculates the Uncollectible Accounts Expense.
• D)The process of accounting for the difference between the balance on a company's bank statement and the balance in its Cash account.
• E)The total proceeds of a promissory note.
• F)An unconditional promise to pay a definite sum of money on demand or at a future date.
• G)The method of accounting for uncollectible accounts that matches bad debts against the sales they help produce.
• H)Short-term financial assets that arise from credit sales made in the ordinary course of doing business.
• I)A method of conducting business transactions that does not involve the actual transfer of cash.
• J)The cost of borrowing money or the return on lending money.
• K)A potential liability that can develop into a real liability if a particular event occurs.
• L)The method of estimating uncollectible accounts that calculates the targeted balance of Allowance for Uncollectible Accounts.

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Definitions:

Semi-strong Form Efficiency

A concept in finance that suggests all public information is already accounted for in stock prices, thus making it impossible to consistently achieve higher returns through analysis of publicly available information.

Price-earnings Ratio

A valuation metric for a company calculated by dividing its current share price by its earnings per share, indicating the dollar amount investors are willing to pay per dollar of earnings.

Investment Survey

A detailed analysis or report that encompasses the performance, trends, and expectations in various investment markets.

Variance

A statistical measure that indicates the dispersion or spread of a set of data points or a probability distribution from its mean or expected value.