• Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

image

PLAY BUTTON

image

PLAY BUTTON

image

Progress

1/18

Click to flip

Card Range To Study

through

18 Cards in this Set

  • Front
  • Back
Accounts Receivable Turnover Rate
A ratio used to measure the liquidity of accounts receivable and the reasonableness of the accounts receivable balance
Aging the Accounts Receivable
The process of classifying accounts receivable by age groups.
Ex. current, past due
Allowance for Doubtful Accounts
A valuation account or contra-asset account relating to accounts receivable and showing the portion of the receivables estimated to be uncollectible.
Bank Reconciliation
An analysis that explains the difference between the balance of cash shown in the bank statement and the balance of cash shown in the depositor's records
Cash Equivalents
Very short-term investments that are so liquid they are equivalent to cash
Cash Management
Panning, controlling and accounting for cash transactions and cash balances
Compensating Balance
A minimum average balance that a bank may require a borrower to leave on deposit in a noninterest bearing account
Default
Failure to pay interest or principle of a promissory note at the due date.
Direct Write-Off Method
A method of accounting for uncollectible receivable in which no expense is recognized until individual accounts are determined to be worthless.
Factoring
Transactions in which a business either sells its account receivable to a financial institution or borrows money pledging its accounts receivable as collateral.
Fair Value Accounting
The balance sheet valuation standard applied to investments in marketable securities.
Financial Assets
Cash and assets convertible directly into known amounts of cash (marketable securities and receivables)
Gain
An increase in owners equity resulting from a transaction other than earning revenue or investment by owners.
Ex. Selling an asset at above price level
Line of Credit
A prearranged borrowing agreement in which a bank stands ready to advance the borrower without delay any amount up to
Loss
A decrease in owners equity resulting from any transaction other than an expense or a redistribution to the owners
Marketable Securities
Highly liquid investments, primarily in stocks and bonds, that can be sold at quoted market prices in organized securities exchanges.
NSF Check
A customer's check that was deposited but returned because of a lack of funds in the account on which the check was drawn.
Unrealized Holding Gain (or Loss) on Investments
A stockholders equity account representing the difference between the cost of investments owned and their market value at the balance sheet date.