Reversed Chapter (8) Flashcards Preview

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Flashcards in Reversed Chapter (8) Deck (13)
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1
Q

The subsidiary ledger containing the individual accounts with suppliers (creditors).

A

accounts receivable

2
Q

The relationship between net sales and accounts receivable; computed by dividing the net sales by the average net accounts receivable; measures how frequently during the year the accounts receivable are being converted to cash.

A

account form

3
Q

The process of analyzing the accounts receivable and classifying them according to various age groupings; with the due date being the base point for determining age.

A

aging the receivables

4
Q

The contra asset account for accounts receivable.

A

Allowance for Doubtful Accounts

5
Q

The method of accounting for uncollectible accounts that provides an expense for uncollectible receivables in advance of their writeoff.

A

allowance method

6
Q

The operating expense incurred because of the failure to collect receivables.

A

bad debt expense

7
Q

The method of accounting for uncollectible accounts that recognizes the expense only when accounts are judged to be worthless.

A

direct write-off method

8
Q

A note that the maker fails to pay on the due date.

A

dishonored note receivable

9
Q

The amount that is due at the maturity or due date of a note.

A

maturity value

10
Q

The estimated selling price of an item of inventory less any direct costs of disposal; such as sales commissions.

A

net realizable value

11
Q

A customer’s written promise to pay an amount and possibly interest at an agreed-upon rate.

A

notes receivable

12
Q

The relationship between sales and accounts receivable; computed by dividing the net accounts receivable at the end of the year by the average daily sales.

A

number of days’ sales in receivables

13
Q

All money claims against other entities; including people; business firms; and other organizations.

A

receivables