Listed Below Are Ten Terms Followed by a List of Phrases

question 88

Multiple Choice

Listed below are ten terms followed by a list of phrases that describe or characterize five of the terms.Match each phrase with the best term placing the letter designating the term in the space provided.
-_____ The amount of the adjustment to the allowance for uncollectible accounts during the period.

• A)Accounts receivable
• B)Allowance method
• C)No effect
• D)Direct write-off method
• E)Net realizable value
• F)Aging method
• G)Bad debt expense
• H)Receivables written off
• I)Decrease assets and increase expenses
• J)Allowance for uncollectible accounts

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Definitions:

NPV

Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment or project by discounting all expected future cash flows back to their present value.

Profitability Index

A financial tool that calculates the relationship between the costs and benefits of a project by dividing the present value of future cash flows by the initial investment cost.

Mutually Exclusive

Situations or events that cannot occur at the same time—choosing one precludes the selection of the other.

Negative Net Present Value

A financial metric indicating that the present value of cash inflows is less than the present value of cash outflows, suggesting the investment is not financially viable.