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121.Listed below five terms followed by a list of phrases

Question : 121.Listed below five terms followed by a list of phrases : 1412686

 

121.Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.  
 
 

1. FactoringOffered to induce prompt payment.

2. Net methodCash discount not taken is interest revenue.

3. Cash discountsThe sale of accounts receivable to a financial institution.

4. Allowance methodAttempts to recognize bad debt expense in the same period as the related sale.             

5. Pledging of accounts receivableReceivables used as collateral for debt.

 

 

 

 

122.Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.  
 
 

1. Average collection periodAverage number of days that accounts receivable are outstanding.             

2. Compensating balanceThe sale of accounts receivable to a financial institution.

3. FactoringDeducted from list price.

4. Trade discountsAn example of a restriction on cash.

5. DiscountingThe sale of a note receivable to a lender.

 

 

 

 

 

 

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Accounting 2 Years Ago 215 Views
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