Match the Following Terms with the Explanations Below

question 131

Essay

Match the following terms with the explanations below. If no term fits the explanation write none
_______ (1) A means of accounting for uncollectibles which does not recognize any expense until specific receivables are determined to be worthless.
_______ (2) An account showing the amount of estimated uncollectible receivables.
_______ (3 ) The process of estimating uncollectible accounts by classifying accounts receivables by age groups.
_______ (4) Dividing net sales by average receivables to create a ratio to measure the liquidity of accounts receivable.
_______ (5) Very short-term liquid investments which must mature within 90 days of acquisition.
_______ (6) Cash and assets convertible directly into known amounts of cash.
_______ (7) An account showing the difference between the cost of an investment in marketable securities and its market value.
_______ (8) The value of a note at its maturity date.
_______ (9) Highly liquid investments that can be sold in organized securities exchanges.
$$\begin{array} { | l | l | l | } \hline \text { Accounts Receivable Turnover Rate } && \text { Financial Assets } \\\hline \text { Allowance for Doubtful Accounts } && \text { Marketable Securities } \\\hline \text { Cash Equivalents } && \text { Mark-to-Market } \\\hline \text { Direct Write Off Method } && \text { Unrealized Gain } \\\hline\end{array}$$

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Definitions:

Total Fixed Costs

The sum of all costs that remain constant regardless of the level of production or sales, such as rent, salaries, or loan payments.

Profit-Maximizing Output

The level of production at which a firm achieves the maximum possible profit, where marginal cost equals marginal revenue.

Marginal Revenue

The additional revenue generated from selling one more unit of a good or service.

Marginal Costs

The rise in overall expenses resulting from the production of an additional unit.