114. Match each of the following terms with the appropriate definition: 1. The accounting constraintthat states that an amount can be ignored if its effect on the financial statements is not...

1. The accounting constraintthat states that an amount can be ignored if its effect on the financial statements is not important to their users.

Accounts receivable turnover

2. Amounts owed by customers from credit sales for which payment is required in periodic payments over an extended period of time.

Installment accounts receivable

3. A buyer of accounts receivable who charges the seller a fee and then receives cash from the receivables as they come due.

Materiality constraint

4. A method of accounting for bad debts that matches the estimated loss from uncollectible accounts receivable against the sales they helped to produce.

Dishonoring a note

5. The accounting principle that requires the financial statements (including the notes) to report all relevant information about operations and financial condition.

Allowance method

6. A method of accounting for bad debts that records the loss from an uncollectible account receivable when it is determined to be uncollectible.

Factor

7. One who signs a note and promises to pay it at maturity.

Full disclosure principle

8. The amount that the signer of a note agrees to pay back when the note matures, not including interest.

Maker of a note

9. Refers to a note maker’s inability or refusal to pay the note at maturity.

Direct write-off

10. A measure of both the quality and liquidity of accounts receivable. It indicates how often, on average, receivables are received and collected during the period.

Principal of a note