Match Each of the Following Terms with the Appropriate Definitions

question 15

Multiple Choice

Match each of the following terms with the appropriate definitions.
-A seller's obligation to replace or correct a product or service that fails to perform as expected within a specified period.

• A)Short-term note payable
• B)Deferred income tax liability
• C)Current liabilities
• D)Warranty
• E)Employee benefits
• F)Federal depository bank
• G)Payroll register
• H)Gross pay
• I)Payroll bank account
• J)Times interest earned

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Definitions:

Allowance Method

An accounting technique used to estimate uncollectible accounts receivable and adjust for bad debts.

Direct Write-Off Method

An accounting practice that involves directly writing off an outstanding receivable if deemed uncollectible, impacting earnings directly.

Adjusting Entry

Journal entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Direct Write-Off Method

An accounting method used to recognize bad debts only when specific receivables are deemed uncollectible, without maintaining an allowance account.