EXERCISESEXERCISE &1Listed below are nine technical accounting terms introduced in this chapter.AccountingTerminologyUncollectibleAllowance forAccounta recelvablețumoverDirect write-off methodaccounts expenseDoubtful AccountsAging scheduleFactoringConservatismDefaultMaturity value terms. For each statement, indicate the term described, or answer "None" if theEach of the following statements may (or may not) describe one of these technie.terms. For each statement, indicate the term described, or answer "None sealstatement does not correctly describe any of the terms.A The principal amount of an interest-bearing note.b Resolving uncertainties in the valuation of assets by reporting assets at thelower end of the range of reasonable values rather than by estimating values ina purely objective manner.c The account indicating the portion of the year-end accounts receivable that areexpected to prove uncollectible.d The account indicating the amount of accounts receivable originating duringthe year that are expected to prove uncollectible.e Failure to make payment of the principal or interest per the terms of a promis-8ory note.1 A computation useful in determining how quickly ą company is able to collectits accounts receivable.9 Recognition of credit losses when specific accounts receivable are determined tobe uncollectible.

Accounting is the term which is defined as the procedure of recording the financial transactions in…

Listed below are nine technical accounting terms introduced in this chapter. Uncollectible accounts expense Allowance for Doubtful Accounts Accounts recelvable tumover Direct write-of method Aglng schedule Factoring Conservatism Default Maturity value

Listed below are nine technical accounting terms introduced in this chapter. Uncollectible accounts expense Allowance for Doubtful Accounts Accounts recelvable tumover Direct write-of method Aglng schedule Factoring Conservatism Default Maturity value

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

EXERCISES
EXERCISE &1
Listed below are nine technical accounting terms introduced in this chapter.
Accounting
Terminology
Uncollectible
Allowance for
Accounta recelvable
țumover
Direct write-off method
accounts expense
Doubtful Accounts
Aging schedule
Factoring
Conservatism
Default
Maturity value

terms. For each statement, indicate the term described, or answer "None" if the
Each of the following statements may (or may not) describe one of these technie.
terms. For each statement, indicate the term described, or answer "None seal
statement does not correctly describe any of the terms.
A The principal amount of an interest-bearing note.
b Resolving uncertainties in the valuation of assets by reporting assets at the
lower end of the range of reasonable values rather than by estimating values in
a purely objective manner.
c The account indicating the portion of the year-end accounts receivable that are
expected to prove uncollectible.
d The account indicating the amount of accounts receivable originating during
the year that are expected to prove uncollectible.
e Failure to make payment of the principal or interest per the terms of a promis-
8ory note.
1 A computation useful in determining how quickly ą company is able to collect
its accounts receivable.
9 Recognition of credit losses when specific accounts receivable are determined to
be uncollectible.

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