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18 Cards in this Set

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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