An Instrument That Is Not Payable to a Specific Payee

question 6

Multiple Choice

An instrument that is not payable to a specific payee or indorsee is known as a(n) ________.

• A) order paper
• B) bearer paper
• C) allonge
• D) draft

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Definitions:

Adjusting Journal Entry

A journal entry made at the end of an accounting period to allocate income and expenses to the appropriate periods.

Allowance for Doubtful Accounts

This is a subsidiary asset account created to approximate the amount of accounts receivable that could potentially be non-collectable.

Bad Debts Expense

An expense account reflecting estimated uncollectible amounts from customers for credit sales made in a specific period.

Aging of Accounts Receivable

A process of categorizing accounts receivable according to the length of time an invoice has been outstanding.