Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
18 Cards in this Set
- Front
- Back
Any asset that is intended to be converted into cash within one year or the company's operating cycle
|
Current Asset
|
|
The time it takes a company to begin with cash, convert cash to inventory, and collect cash from the sale
|
Operating Cycle
|
|
Primary Assets for Financial Services
|
Short Term Notes Receivable
Investments |
|
Primary Assets for Manufacturing
|
Property
Plant Equipment |
|
Primary Assets for Retailers
|
Inventory
|
|
Primary Assets Internet Firms
|
Cash
Short Term Investments |
|
money is held here and controlled by a trustee until the debtor's existing liability is discharged. Company owns it but can not use it.
|
Escrow
|
|
Minimum cash balances that are maintained on deposit in the accounts of customers to whom they lend money or extend credit. Company owns it but can not use it
|
Compensating balances
|
|
Money that a company has but can not use for some special purpose. Usually through borrowing arrangements.
|
Restricted Cash
|
|
Primary Assets Internet Firms
|
Cash
Short Term Investments |
|
money is held here and controlled by a trustee until the debtor's existing liability is discharged. Company owns it but can not use it.
|
Escrow
|
|
Minimum cash balances that are maintained on deposit in the accounts of customers to whom they lend money or extend credit. Company owns it but can not use it
|
Compensating balances
|
|
Money that a company has but can not use for some special purpose. Usually through borrowing arrangements.
|
Restricted Cash
|
|
These arise from selling goods or services to customers who do not immediately pay cash. Normally collectible in 30 -60 days.
|
Accounts Receivable
|
|
Revenue can be recognized when an Accounts Receivable transaction is recognized
|
True
|
|
The valuation base for the accounts receivable account is not the face amount of the receivables, but rather _____, an estimate of the cash that is expected to be produced by the receivables.
|
Net Realizable Value
|
|
Trade terms underlying AR and AP. Informal credit trade agreement used in cases where frequent credit transactions are conducted and a running balance of the obligation or receivable is maintained
|
Open Account
|
|
A reduction in the per unit price of an item if a certain quantity is purchased.
|
Quantity Discount
|