123.Listed below 10 terms followed by a list of phrases : 1412687
123.Listed below are 10 terms followed by a list of phrases that describe or characterize the terms. Match each phrase with the correct term.
1. Compensating balanceBad debt expense is recorded when receivables are written off.
2. Direct write-off methodReduces the amount paid by a credit customer if paid within a specified time.
3. Cash discountGrouping accounts receivable depending on the length of time outstanding.
4. Balance sheet approachAn attempt to satisfy the matching principle for bad debts.
5. Without recourseWhen merchandise is returned for credit.
6. Allowance methodBad debt expense determined by estimating net realizable value.
7. PledgingBad debt expense a % of credit sales.
8. Sales returnsAn example of a restriction on cash.
9. Accounts receivable aging scheduleUsing receivables as collateral for a loan.
10. Income statement approachBuyer assumes the risk of uncollectibility.
124.Listed below are five terms followed by a list of phrases that describe or characterize each of the terms with respect to accounting under IFRS. Match each phrase with the correct term.
1. ControlThis accounting approach can be used for receivables if elected upon initial recognition.
2. ImpairmentCan be netted against positive cash balances on the balance sheet.
3. Risks and rewardsCan be recovered to increase income if fair value increases.
4. Available for salePrimary consideration for determining whether transfer of a receivable is a sale.
5. OverdraftSecondary consideration for determining whether transfer of a receivable is a sale.