Each question in this quiz is timed.
is the person or firm making the promise to pay.
means that the person who has physical custody of an asset is not the same person who has record-keeping responsibilities for that asset.
is a current asset that arises from sales on credit; it is also the total amount customers owe the firm.
An is a check the firm has written but that has not yet cleared the bank. That is, the check has not been presented to the bank for payment yet.
The is a method of accounting for bad debts in which the amount of the uncollectible accounts is estimated at the end of end accounting period.
A is a comparison between the cash balance in the firm´s accounting records and the cash balance on the bank statement to identify the reasons for any differences.
Net realizable value is a bank deposit the firm has made but is not included on the month´s bank statement because the deposit did not reach the bank´s recorded-keeping department in time to be included on the current bank statement.
The allowance for uncollectible accounts is a contra-asset account, the balance of which represents the total amount the firm believes it will not collect from its total accounts receivable.
Bad debts are highly liquid investments with a maturity of three months or less that a firm can easily convert into a known amount of cash.
❌ is a summary of the activity in a bank account sent each month to the account holder.
