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18 Cards in this Set
- Front
- Back
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Any asset that is intended to be converted into cash within one year or the company's operating cycle
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Current Asset
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The time it takes a company to begin with cash, convert cash to inventory, and collect cash from the sale
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Operating Cycle
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Primary Assets for Financial Services
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Short Term Notes Receivable
Investments |
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Primary Assets for Manufacturing
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Property
Plant Equipment |
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Primary Assets for Retailers
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Inventory
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Primary Assets Internet Firms
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Cash
Short Term Investments |
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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.
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Escrow
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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
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Compensating balances
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Money that a company has but can not use for some special purpose. Usually through borrowing arrangements.
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Restricted Cash
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Primary Assets Internet Firms
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Cash
Short Term Investments |
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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.
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Escrow
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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
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Compensating balances
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Money that a company has but can not use for some special purpose. Usually through borrowing arrangements.
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Restricted Cash
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These arise from selling goods or services to customers who do not immediately pay cash. Normally collectible in 30 -60 days.
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Accounts Receivable
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Revenue can be recognized when an Accounts Receivable transaction is recognized
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True
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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.
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Net Realizable Value
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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
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Open Account
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A reduction in the per unit price of an item if a certain quantity is purchased.
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Quantity Discount
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