Term
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Definition
| 1. the seller must have substantially performed its obligations to the customer, 2. the seller must have obtained an asset from the customer that it can reliably measure |
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Term
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Definition
| the firm recognizes expenses when it consumes assets |
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Term
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Definition
| The physical return of merchandise. The seller often accumulates amounts of such returns in a temporary revenue contra account. |
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Term
| Multiple Deliverable Contract |
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Definition
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Term
| Percentage-of-completion method |
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Definition
| recognizing revenues and expenses on a job, order, or contract in proportion to the costs incurred for the period/total costs expected to be incurred, |
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Term
| accounts receivable, trades receivable |
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Definition
| the amount owed to a seller by customers who have purchased goods and services on credit |
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Term
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Definition
| an account receivable that the seller never collects |
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Term
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Definition
| a method attemtpting to match all expenses of a transaction with their associated revenues, usually involves a debit to expense and a credit to an estimated liability |
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Term
| allowance for uncollectibles account |
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Definition
| a CONTRA ACCOUNT that shows the estimated accounts receivable amount that the firm expects not to collect |
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Term
| accounts receivable, Gross Account |
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Definition
| claims against a debtor before adjustments are made for uncollectable accounts and bad debt expense |
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Term
| accounts receivable, Net Account |
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Definition
| claims against a debtor after adjustments are made for uncollectable accounts and bad debt expense |
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Term
| Bad Debt Expense, Provision for Bad Debts, Provision for uncollectible accounts |
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Definition
| the name for an account debited in both the allowance method for uncollectible accounts and the direct write off method |
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Term
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Definition
| a summary account with totals equal to those of entries and balances that appear in individual accounts in a subsidiary ledger...ie accounts receivable |
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Term
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Definition
| to charge an assest to expense or loss, that is to debit expense and credit the asset |
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Term
| Percentage-of-sales procedure |
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Definition
| recognizing revenues and expenses on a job, order or contract in proportion to the costs incurred for the period/total costs expected to be incurred |
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Term
| Aging-of-accounts receivable procedure |
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Definition
| the process of classifying acocnts receivable b the time elapsed since the claim came into existence for the purpose of estimating the amount of uncollectible accounts receivable as of a given date |
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Term
| accounts receivable turnover ration |
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Definition
| net sales on account/average accounts receivable |
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Term
| days receivables outstanding |
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Definition
| accounts receivable turnover ratio divided by 365 days a year |
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Term
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Definition
| the bundling of financial assets into groups that can become the basis for raising cash. |
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Term
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Definition
| the physical return of merchandise. seller often accumulates amounts of such returns in a temporary revenue contra account |
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Term
| deffered performance obligations, advances from customers, deferred revenues, unearned revenues |
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Definition
| the seller has promised the buyer that after the sale seller will provide further goods or services as part of the initial sale |
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Term
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Definition
| recognizing revenue and expense from a sales transaction in proportion to the faction of the selling price collected during a period |
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Term
| gross margin percentage, gross margin |
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Definition
| 100 X (1 - cost of goods sold/net sales) = 100 X (gross margin/net sales) |
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Term
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Definition
| a method of revenue reconition that credits inventory as the firm receives cash collections and continues until the firm has collected cash equal to the sum of all costs. |
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Term
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Definition
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Term
| percentage-of-completion method |
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Definition
| recognizing revenues and expenses on a job in proportion to the costs incurred for the period divided by total costs expected to be incurred for the job |
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Term
| construction in progress, construction in process account |
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Definition
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Term
| completed contract method |
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Definition
| recognizing revenues and expenses for ajob or order only when the firm finishes it, except that when the firm expes a loss on the contract, the firm recognize all revenues and expenses in the period when the firm first foresees a loss. |
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