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.

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Definitions:

Cortisol

A steroid hormone produced by the adrenal glands, often referred to as the "stress hormone" because its levels increase in response to stress.

Metabolism

The complex of life-sustaining chemical transformations within the cells of living organisms.

Lazarus

A psychologist who developed the theory of stress and coping, which examines how individuals respond to psychological stress.

Interpretation

The process of explaining the meaning of something, often in a particular context or perspective.