Quiz Ch 05 – T/F Trade Discounts for Large, Creditworthy Customers
Financial Accounting
Thomas, Tietz, and Harrison
12th Edition
Customers who make large purchases and have good credit and cash flow often receive trade discounts.
Customers who make large purchases and have good credit and cash flow often receive trade discounts.
Most sales on account follow a standard credit cycle of 30 days.
The maturity value of a note equals the principal plus accrued interest throughout the note term.
A common sales discount term, such as 2/10, n/30, implies that if the buyer pays the invoice within 2 days, they can receive a 10% discount from the seller.
Unless specified otherwise, interest rates are assumed to be on an annual basis.
Match each description with its appropriate key term.
Which statement is accurate regarding notes receivable?
Which of the following statements is true about the two parties involved in a note?
What does it mean to satisfy a performance obligation?
What is the objective of the aging-of-receivables method and what is the approach used to estimate uncollectible accounts?