ACCT 201A CSUf CORRECT 100%
Dishonored note - ANSWERa note that is not paid in full at maturity
Accounts receivable - ANSWERAmounts owned by customers on account
Promissory note - ANSWERa written promise to pay a specified amount of money on
demand or at a definite time
allowance method - ANSWERA method of accounting for bad debts that involves
estimating uncollectible accounts at the end of each period.
Factor - ANSWERa finance company or bank that buys receivables from businesses
for a fee and then collects the payments directly from the customers
Maker - ANSWERthe party in a promissory note who is making the promise to pay
Accounts Receivable Turnover - ANSWERA measure of the liquidity of accounts
receivable, computed by dividing net credit sales by average net accounts
receivable.
aging of accounts receivable - ANSWERAn analysis of customer balances by the
length of time they have been unpaid
Units-of-activity method - ANSWERA depreciation method in which useful life is
expressed in terms of the total units of production or use expected from the asset.
Depreciation - ANSWERthe process of allocating to expense the cost of a plant
asset over its useful life in a rational and systematic manner
ordinary repairs - ANSWERexpenditures to maintain the operating efficiency and
expected productive life of the asset
Goodwill - ANSWERthe value of all favorable attributes that relate to a business
enterprise
straight-line method - ANSWERa method in which an equal amount of depreciation
is expensed each year of the asset's useful life.
Contingencies - ANSWEREvents with uncertain outcomes, such as a potential
liability that may become an actual liability sometime in the future
Discount - ANSWERthe difference between the face value of a bond and its selling
price when a bond is sold for less than its face value
Unsecured bonds - ANSWERbonds issued against the general credit of the borrower
Dishonored note - ANSWERa note that is not paid in full at maturity
Accounts receivable - ANSWERAmounts owned by customers on account
Promissory note - ANSWERa written promise to pay a specified amount of money on
demand or at a definite time
allowance method - ANSWERA method of accounting for bad debts that involves
estimating uncollectible accounts at the end of each period.
Factor - ANSWERa finance company or bank that buys receivables from businesses
for a fee and then collects the payments directly from the customers
Maker - ANSWERthe party in a promissory note who is making the promise to pay
Accounts Receivable Turnover - ANSWERA measure of the liquidity of accounts
receivable, computed by dividing net credit sales by average net accounts
receivable.
aging of accounts receivable - ANSWERAn analysis of customer balances by the
length of time they have been unpaid
Units-of-activity method - ANSWERA depreciation method in which useful life is
expressed in terms of the total units of production or use expected from the asset.
Depreciation - ANSWERthe process of allocating to expense the cost of a plant
asset over its useful life in a rational and systematic manner
ordinary repairs - ANSWERexpenditures to maintain the operating efficiency and
expected productive life of the asset
Goodwill - ANSWERthe value of all favorable attributes that relate to a business
enterprise
straight-line method - ANSWERa method in which an equal amount of depreciation
is expensed each year of the asset's useful life.
Contingencies - ANSWEREvents with uncertain outcomes, such as a potential
liability that may become an actual liability sometime in the future
Discount - ANSWERthe difference between the face value of a bond and its selling
price when a bond is sold for less than its face value
Unsecured bonds - ANSWERbonds issued against the general credit of the borrower
