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accounting final
accounting
6
Accounting
05/01/2011

Additional Accounting Flashcards

 


 

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Term
When companies sell their receivables to other companies, the transaction is called factoring.
Definition
true
Term
Under the direct write-off method, no attempt is made to match Bad Dept Expense to Sales Revenue in the same accounting period.
Definition
true
Term
The difference between accounts receivable and its contra asset account is called net realizable value.
Definition
true
Term
When the estimate based on analysis of receivables is used, income is reduced when a specific receivable is written off.
Definition
false
Term
When an account receivable that has been written off is subsequently collected, the account receivable is said to be reinstated.
Definition
true
Term
Definition