Match the Following Terms with the Explanations Below

question 71

Essay

Match the following terms with the explanations below.If no term fits the explanation write none
________ (1)A means of accounting for uncollectibles,which does not recognize any expense until specific receivables are determined to be worthless.
________ (2)An account showing the amount of estimated uncollectible receivables.
________ (3)The process of estimating uncollectible accounts by classifying accounts receivables by age groups.
________ (4)Dividing net sales by average receivables to create a ratio to measure the liquidity of accounts receivable.
________ (5)Very short-term liquid investments that must mature within 90 days of acquisition.
________ (6)Cash and assets convertible directly into known amounts of cash.
________ (7)An account showing the difference between the cost of an investment in marketable securities and its market value.
________ (8)The value of a note at its maturity date.
________ (9)Highly liquid investments that can be sold in organized securities exchanges.

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Definitions:

Contribution Margin Ratio

A financial metric that measures how much of a company's revenue is available to cover its variable costs and contribute to its fixed costs and profits.

Fixed Costs

Expenses that do not change with the level of goods or services produced by the business, such as rent, salaries, and insurance premiums.

Break-even Point

The point at which total income matches total outgoings, leading to neither a profit nor a loss.

Sales Dollars

This term represents the total revenue generated from the sales of goods or services, expressed in currency units.