A/R
All money claims against other entities
What are receivables?
Records bade debt expense only when a specific customer’s account is deemed worthless.
What is the Direct Write-Off method?
The method of inventory costing based on the assumption that the first units purchased are the first units sold.
What is FIFO?
The return required by the market on the day of issuance.
What is the effective rate of a bond?
Patents, copyrights, goodwill
What are some examples of intangible assets?
A list of customer accounts sorted by age classes
What is an aging report?
A contra asset account that represents the amount of estimated uncollectible receivables.
What is Allowance for Doubtful Accounts?
The method of inventory costing based on the assumption that the last units purchased are the first units sold.
What is LIFO?
The interest rate printed on the bond certificate.
What is the contract rate of a bond?
Oil reserve, rock quarry, coal mine, etc.
What are some examples of natural resources?
Measure of how frequently during the year accounts receivable are being turned into cash.
What is accounts receivable turnover?
Operating expense recorded as a result of receivables being uncollectible.
What is bad debt expense?
The method of inventory costing in which the cost of the units sold and the ending inventory is a weighted average if the purchase cost.
What is weighted average?
If the contract rate is less than the effective rate.
What is a bond discount?
Equipment, buildings, land, parking lot, etc.
What are some examples of fixed assets?
Term for selling receivables.
What is factoring?
It is past due, customer does not respond to attempts to collect, customer files bankruptcy, customer goes out of business, and company cannot locate the customer.
What are indicators that a receivable may not be collectible?
Merchandise purchased for resale
What are inventories?
A form of an interest bearing note.
What is a bond?
Convertible to cash within one year or less
What is a current asset?
A receivable set up for selling merchandise or services on account.
What is A/R?
The difference between accounts receivable and allowance for doubtful accounts.
What is net realizable value?
Purchase orders, receiving reports, vendor invoices, lock higher price in cabinets, use two ways mirrors, cameras, security guards, restricted entry.
What are security measures that safeguard inventory?
The contract between the bond issuer and bond purchaser.
What is a bond indenture?
Balance Sheet separated by current assets and long-term assets. Same with liabilities.
What is a classified balance sheet?