1 (10 Point) Match cach of the following terms with the appropriate definitions. Put the letter of the correct answer on the line next to the definition. A. Allowance method B. Installment accounts receivable C. Principal of a note D. Full disclosure principle E. Materiality constraint F. Direct write-off method G. Dishonoring a note H. Accounts receivable turnover 1. Factoring accounts receivable J. Pledging accounts receivable 1 2. 3. 5. 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 Amounts owed by customers from credit sales for which payment is required in periodic payments over an extended period of time. 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. A method of accounting for bad debts that matches the estimated loss from uncollectible accounts receivable against the sales they helped to produce. Selling all or a portion of accounts receivable to a finance company or bank The accounting principle that requires financial statements (including the notes) to report all relevant information about operations and financial condition Committing accounts receivable as security for a loan. A method of accounting for bad debts that records the loss from an uncollectible account receivable immediately upon determining it is uncollectible. 10. The amount that the signer of a note agrees to pay back when the note matures, not including interest. 6. 7. 8. 9