. Matching Key Terms and Descriptions Terms relating to concepts discussed in this chapter along with descriptions of the terms are included in the following two lists. Match each term, 1 through 15, with the most appropriate description a through a Terms Description of Terms 1. Petty Cash a. Measure of how often receivables are collected during the year. 2. Compensating balance b. A schedule that shows the correct cash balance for both the bank and the company. 3. Cash equivalents c. Reduces accounts receivable to net realizable value. 4. Bank reconciliation d. A special cash fund used to make small payments. 5. Trade discount e. Contractual obligation to receive specific amounts on specific dates 6. Cash discount f. Sale of accounts receivable to a third party at a discount to obtain cash immediately. 7. Allowance method 8. Negotiable instruments that are accepted by a bank for immediate deposit and withdrawal. 8. Accounts receivable aging h. A loan constraint that requires a minimum balance at all times in a bank account. . 9. Direct write-off L. Estimated value of liability due to potential payments to factor for defaulted accounts receivable. 10. Factoring Schedule that organizes accounts receivable balances by due date. 11. Assignment k. Number of days on average, before payment is made to satisfy a receivable balance 12. Recourse liability Reduces accounts receivable only when specific accounts are known to be uncollectible. 13. Accounts receivable turnover m. Reduction in selling price depending on customer type and/or quantity ordered 14. Average days to collect receivables n.Reduction in payment required due to timing of payment 15. Note receivable Using accounts receivable as collateral for a loan from a third party e e