Ch 9:1 Word Scramble
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| Question | Answer |
| Acid-Test Ratio | Ratio of the sum of cash plus short-term investments plus net current receivables, to current liabilities. |
| Aging-Of-Accounts Method | A way to estimate bad debts by analyzing individual accounts receivable according to the length of time they have been receivable from the customer. |
| Allowance for Doubtful Accounts | A contra account, related to accounts receivable, that holds the estimated amount of collection losses. |
| Allowance for Uncollectible Accounts | Also called Allowance for Doubtful Accounts. |
| Allowance Method | A method of recording collection losses on the basis of estimates, instead of waiting to see which customers the company will not collect from. |
| Bad-Debt Expense | A company unable to collect from some customers, and that creates an expense. |
| Balance-Sheet Approach | An entity's assets, liabilities, and owner's equity as of a specific date. |
| Collection Period | Also called Days' Sales in Receivables. |
| Creditor | The party to a credit transaction who sells goods or a service and obtains a receivable. |
| Days' Sales In Receivable | Ratio of average net accounts receivable to one day's sales. |
| Debtor | The party to a credit transaction who makes a purchase and has a payable. |
| Default On A Note | Also called default on a note. |
| Direct Write-Off Method | A method of accounting for uncollectible receivables, in which the company waits until the credit department decides that a customer's account receivable is uncollectible. |
| Discounting A Note Receivable | Selling a note receivable before its maturity date. |
| Dishonor Of A Note | Failure of a note's maker to pay a note receivable at maturity. |
| Doubtful-Account Expense | Also called Bad-Debt Expense. |
| Due Date | The date when final payment of the note is due. |
Created by:
mattschultice
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