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.

---

Definitions:

Real-Life Events

Actual occurrences in one’s day-to-day life, as opposed to hypothetical or fictional scenarios, that can influence emotions, behavior, and health.

Mentally Incompetent

A legal determination that a person is unable to make decisions for themselves due to mental incapacity or illness.

Psychological Treatment

Therapeutic interventions designed to address and alleviate mental health issues through various talk therapy methods.

Institutionalized

refers to the process of becoming deeply ingrained within an institution or established system, often losing autonomy or the ability to function independently.