Match the Term and the Explanation

question 100

Multiple Choice

Match the term and the explanation.Not all explanations will be used. _____ Net credit sales
_____ Allowance method
_____ Notes receivable
_____ Accounts receivable
_____ Average net trade receivables
_____ Reserve for bad debts
_____ Bad debt loss rate
_____ Annual interest rate

• A)The amount of interest a lender receives during a year.
• B)A system used by companies to allocate their budgets over the different operating expenses.
• C)The numerator of the receivables turnover ratio.
• D)One of several common account names used to identify estimated uncollectible accounts receivable.
• E)The historical average percentage of credit sales that a company has been unable to collect.
• F)Another name for a company's total revenue which is calculated by multiplying the quantity sold by the average price.
• G)The costs of maintaining accounts with customers who have not made recent purchases.
• H)The interest that a company receives during the year divided by the principal of the loan.
• I)The rate at which a company pays off its liabilities or debts.
• J)The total amount of money loaned through notes that have not been repaid.
• K)The denominator of the receivables turnover ratio.
• L)The average level of net sales revenue the firm earns each month.
• M)A two-stage process by which accounts are adjusted in anticipation of bad debts.
• N)The portion of past credit sales that have not yet been collected.

Comprehend how to calculate contribution margin and its significance.

Calculate break-even points in different scenarios including units and sales dollars.

Determine the contribution margin ratio and its application in analyzing sales and costs.

Understand the assumptions underlying CVP analysis and its limitations.

---

Definitions:

Telus

A Canadian telecommunications company that provides a variety of products and services, including internet access, voice, entertainment, healthcare, video, and IPTV television.

Web Media

Digital forms of communication, including websites, social media, and online platforms, that disseminate information or provide entertainment via the internet.

Computer-mediated Communication

The exchange of messages between two or more individuals through the use of digital devices or platforms, such as email, social media, and online forums.

Active Listening

A technique for improving the accuracy of information reception by paying close attention to the sender.