Term
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Definition
| amounts due from customers for credit sales; backed by the customer's general credit standing. |
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Term
| Accounts Receivable Turnover |
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Definition
| measure of both the quality and liquidity of accounts receivable |
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Term
| Aging of accounting receivable |
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Definition
| process of classifying accounts receivable by how long they are past due for purposes of estimating uncollectible accounts |
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Term
| Allowance for doubtful accounts |
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Definition
| contra asset account with a balance approximating uncollectible accounts receivable |
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Term
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Definition
| procedure that estimates and matches bad debt expense with its sales for the period and reports account receivable at estimated realizable value |
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Term
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Definition
| accounts of customer who do not pay what they have promised to pay |
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Term
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Definition
| method that records the loss from an uncollectible account receivable at the time it is determined to be uncollectible; no attempt is made to estimate bad debts... |
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Term
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Definition
| charge for using money or other assets loaned from one entity to another |
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Term
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Definition
| entity who signs a note and promises to pay it at maturity |
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Term
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Definition
| prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses |
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Term
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Definition
| date when a notes principal and interest are due |
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Term
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Definition
| entity to whom a note is made payable |
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Term
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Definition
| amount that the signer of a note agrees to pay back when it matures, not including interest |
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Term
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Definition
| written promise to pay a specified amount either on demand or at a definite future date; is a note receivable for the lender but a note payable for the lendee |
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Term
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Definition
| expected proceeds from converting an asset into cash |
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Term
| accelerated depreciation method |
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Definition
| method that produces larger depreciation charges in the early years of an assets life and smaller charges in its later years |
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Term
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Definition
| process of allocating the cost of an intangible asset to expense over its estimated useful life |
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Term
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Definition
| expenditures to make a plant asset more efficient of productive; also called improvements |
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Term
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Definition
| assets acquisition cost less its accumulated depreciation; also sometimes used synonymously as the carrying value or an account |
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Term
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Definition
| additional cost of plants assets that provide material benefits extending beyond the current period; also called balance sheet expenditures |
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Term
| change in n accounting estimate copyright |
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Definition
| change in an accounting estimate that results from new information, subsequent developments, or improved judgment that impact current and future periods |
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Term
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Definition
| all normal and reasonable expenditures necessary to get an asset in place and ready for it intended use |
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Term
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Definition
| method that determines depreciation charge for the period by multiplying as depreciation rate by the assets beginning period book value |
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Term
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Definition
| process of allocating the cost of natural resources to period when they are consumed and sold |
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Term
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Definition
| expense created by allocating the cost of plant and equipment in periods in which they are used; represent the expense of using the asset |
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Term
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Definition
| major repair that extend the useful life of a plant asset beyond prior expectation; treated as a capital expenditure |
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Term
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Definition
| granted by a company or government to sell a product of service under specified conditions |
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Term
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Definition
| amount by which a company's value exceeds the value of its individual assets less it liabilities |
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Term
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Definition
| diminishment of and asset value |
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Term
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Definition
| condition in which the capacity of plant assets to small to meet the company production demands |
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Term
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Definition
| asset life that is not limited by legal, regulatory contractual, competitive, economic, or other factors |
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Term
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Definition
| long term asset used to produce or sell products or services; usually lack physical form and have uncertain benefits |
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Term
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Definition
| assets that incase the benefits of land, have a limited useful, and depreciated |
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Term
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Definition
| rights the lessor grants to the lessee under the term of a lease |
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Term
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Definition
| alteration or improvement to lease property such as partition and storefronts |
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Term
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Definition
| party to a lease who secures the right to possess and use the property form another party |
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Term
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Definition
| party to a lease who grants another party the right to posses and use its property licenses |
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Term
| modified accelerated cost recovery system |
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Definition
| depreciation system requirement by federal income tax law |
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Term
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Definition
| assets physically consumed when used; examples are timber, mineral deposits, and oil and gas fields; also called wasting assets |
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Term
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Definition
| condition in which, because of new invention and improvements, a plant asset can no longer be sued to produce goods or services with a competitive advantage |
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Term
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Definition
| repairs to keep a plant asset in normal, good operating condition; treated as a revenue expenditure and immediately expensed |
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Term
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Definition
| exclusive right granted to its owner to produced and sell an item or to use a process for 17 years |
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Term
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Definition
| tangible long lived assets used to produce or sell products and services; also call properly, plant and equipment or fixed assets |
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Term
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Definition
| expenditures reported on the current income statement as an expense because they do not provide benefits in future periods |
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Term
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Definition
| estimate of amount to be recovered at the end of an assets useful life; also call residual value or scrape value |
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Term
| straight line depreciation |
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Definition
| method that allocates an equal portion of the depreciable cost of plant asset to each accounting period in its useful life |
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Term
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Definition
| measure of a company's ability to use its assets to generate sales; computed by dividing net sale by average total assets |
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Term
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Definition
| symbol, name, phrase, or jingle identified with a company, product, or service |
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Term
| units of production depreciation |
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Definition
| method that charges a varying amount to depreciation expense or each period of an assets useful life depending on its usage |
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Term
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Definition
| length of time an asset will be productively used in the operation of a business; also called service |
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