Create an account
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 recievable
the process of classifying account receivable by age groups such as current, 1-30 days past due, 31-60 days past due, etc
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 uncollectable
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
very short-term investments that are so liquid that they are considered equivalent to cash
a minimum average balance that a bank may require a borrow to leave on deposit in a non interest-bearing account
direct write-off method
a method of accounting for uncollectible receivables in which no expense is recognized until individual accounts are determined to be worthless
transactions in which a business either sells its accounts receivable to a financial institution or borrows money by pledging its accounts receivable as collateral
fair value accounting
the balance sheet valuation standard applied to investments in marketable securities
cash and assets convertible directly into known amounts of cash (such as marketable securities and receivables)
an increase in owners' equity resulting from a transaction other than earning revenue or investment by the owners
line of credit
a prearranged borrowing agreement in which a bank stands ready to advance the borrower without delay any amount up to a specified credit limit
a decrease in owners' equity resulting from any transactions other than an expense or a distribution to the owners
highly liquid investments, primarily in stocks and bods, that con be sold at quoted market prices in organized securities exchange
a customer's check that was deposited but returned because of a lack of funds in the account on which the check was drawn
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