138. Match each of the following terms with the appropriate definitions. A. Allowance methodB. Installment accounts receivableC. Principal of a noteD. Full disclosure principleE. Materiality...

____ 1.

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

____ 2.

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

____ 3.

The accounting constraint that states that an amount can be ignored if its effect on the financial statements is unimportant to its users.

____ 4.

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

____ 5.

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

____ 6.

Selling all or a portion of accounts receivable to a finance company or bank.

____ 7.

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

____ 8.

Committing accounts receivable as security for a loan.

____ 9.

A method of accounting for bad debts that records the loss from an uncollectible account receivable immediately upon determiningit is uncollectible.

____10.

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