Match the Term and the Explanation

question 90

Essay

Match the term and the explanation.Not all explanations will be used.
_____ Trade receivables
_____ Percent of credit sales method
_____ Allowance for doubtful accounts
_____ Principal
_____ Non-trade receivables
_____ Aging of accounts receivable
_____ Income smoothing
_____ Factoring
A.How much money you can expect to earn over a period of time selling your goods.
B.What is achieved when a company deliberately reports high bad debts in good years and low bad debts in bad years.
C.A method of estimating uncollectible debts by forecasting the probability of not collecting late accounts.
D.Selling accounts receivable to another company for immediate cash.

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Definitions:

Bonuses

Additional financial compensation awarded to employees as a reward for their performance.

Principle of Exceptions

A management principle focusing attention and resources on areas that deviate significantly from standards or expectations.

Standard Costs

Predetermined costs for materials, labor, and overhead used as a benchmark for evaluating actual production costs.

Factory Overhead Cost Variance

The difference between the actual factory overhead costs incurred and the expected (or budgeted) overhead costs based on standard cost accounting.