Chapter 14 Test A - Identifying Accounting Terms

Select the one term in Column I that best fits the following definition: Crediting the estimated value of uncollectible accounts to a contra account.

• allowance method

• aging of accounts receivable

• book value

• book value of accounts receivable

• dishonored note

Select the one term in Column I that best fits the following definition: The difference between the balance of Accounts Receivable and its contra account, Allowance for Uncollectible Accounts.

• book value of accounts receivable

• aging of accounts receivable

• allowance method

• book value

• dishonored note

Select the one term in Column I that best fits the following definition: The difference between an asset’s account balance and its related contra account.

• book value

• aging of accounts receivable

• allowance method

• book value of accounts receivable

• dishonored note

Select the one term in Column I that best fits the following definition: The amount of accounts receivable a business expects to collect.

• book value of accounts receivable

• book value

• aging of accounts receivable

• net realizable value

• allowance method

Select the one term in Column I that best fits the following definition: A method used to estimate uncollectible accounts receivable that assumes a percent of credit sales will become uncollectible.

• book value of accounts receivable

• aging of accounts receivable

• percent of sales method

• allowance method

• book value

Select the one term in Column I that best fits the following definition: A method that uses an analysis of accounts receivable to estimate the amount that will be uncollectible.

• allowance method

• book value

• aging of accounts receivable

• percent of accounts receivable method

• book value of accounts receivable

Select the one term in Column I that best fits the following definition: Analyzing accounts receivable according to when they are due.

• book value

• aging of accounts receivable

• allowance method

• book value of accounts receivable

• dishonored note

Select the one term in Column I that best fits the following definition: Canceling the balance of a customer account because the customer does not pay.

• allowance method

• aging of accounts receivable

• book value

• writing off an account

• book value of accounts receivable

Select the one term in Column I that best fits the following definition: A written and signed promise to pay a sum of money at a specified time.

• aging of accounts receivable

• promissory note

• book value

• allowance method

• book value of accounts receivable

Select the one term in Column I that best fits the following definition: A promissory note signed by a business and given to a creditor.

• aging of accounts receivable

• note payable

• book value of accounts receivable

• book value

• allowance method