this exercise will quiz you about terminology used in this chapter a list of account 610303

This exercise will quiz you about terminology used in this chapter. A list of accounting terms with which you should be familiar appears below.

Instructions

For each item below, enter in the blank the term that is described.

1. Amounts due from individuals and other companies.
2. Amounts owed by customers on account.
3. Claims for which formal instruments of credit are issued as proof of the debt.
4. Various forms of nontrade receivables, such as interest receivable and income taxes refundable.
5. The analysis of customer balances by the length of time they have been unpaid.
6. Management establishes a percentage relationship between the expected losses from uncollectible accounts and the amount of receivables.
7. Management establishes a percentage relationship between expected losses from uncollectible accounts and the amount of credit sales.
8. The net amount expected to be received in cash.
9. A written promise to pay a specified amount of money on demand or at a definite time.
10. The party in a promissory note who is making the promise to pay.
11. The party to whom payment of a promissory note to be made.
12. A note that is not paid in full at maturity.
13. A finance company or bank that buys receivables from businesses and then collects the payments directly from the customers.
14. Notes and accounts receivable that result from sales transactions.
15. A measure of the liquidity of accounts receivables, computed by dividing net credit sales by average net accounts receivables.
16. The average amount of time that a receivable is outstanding, calculated by dividing 365 days by the accounts receivable turnover ratio.
17. An expense account used to record the cost of uncollectible receivables.
18. A method of accounting for bad debts that involves expensing accounts at the time they are determined to be uncollectible.
19. A method of accounting for bad debts that involves estimating uncollectible accounts at the end of each period.
20. An account that shows the estimated amount of claims on customers that the company expects will become uncollectible in the future.