Match the term and its definition. There are more definitions than terms.

Question

A.
B. Net Sales Revenue
C. Annual Interest Rate
D.
E.
F. Accounts Receivable
G. Allowance Method
H. Historical Percentage of Bad Debt Losses
I. Average Net Receivables
J.
K.
L.
M. Notes Receivable
N. Subsidiary Account

Answer 1

A. The rate at which a company pays off its liabilities or debts.
B. The numerator of the receivables turnover ratio.
C. The interest that a company receives during the year divided by the principal of the loan.
D. Another name for a company's total revenue, which is calculated by multiplying the quantity sold by the average price.
E. The amount of interest a lender receives during a year.
F. The portion of past credit sales that have not yet been collected.
G. An accounting method which involves estimating bad debts.
H. Used by the percentage of credit sales method to estimate bad debts.
I. The denominator of the receivables turnover ratio.
J. The average level of net sales revenue the firm earns each month.
K. A system used by companies to allocate their budgets over the different operating expenses.
L. The costs of maintaining accounts with customers who have not made recent purchases.
M. The total amount of money loaned through notes that the lender has not yet collected.
N. A separate record for each accounts receivable customer.