Key state from thing 7: reporting and examining Receivables native Financial Accounting, info for decision by man J. Wild. McGraw-Hill, 2005.
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| Amounts due from client for credit transaction sales; backed by the customer"s general credit standing. | |
| Accounts receivable Turnover | Measure the both the quality and liquidity of account receivable; shows how frequently receivables are got and collected during the period; computed by separating net sales by mean accounts receivable. |
| Aging of account Receivable | Process of classifying accounts receivable by just how long castle are previous due for functions of estimating uncollectible accounts. |
| Allowance for unconvinced Accounts | Contra legacy account v a balance approximating uncollectible accounts receivable; likewise called allowance for Uncollectible Accounts. |
| Allowance Method | Procedure that (a) estimates and matches negative debts cost with that is sales because that the period and/or (b) reports account receivable at approximated realizable value. |
| Bad Debts | Accounts of client who execute not salary what they have actually promised come pay; an cost of offering on credit; also called uncollectible accounts. |
| Direct Write-Off Method | Method that documents the loss native an uncollectible account union at the time it is established to it is in uncollectible; no effort is made come estimate poor debts. |
| Interest | Charge for making use of money (or other assets) loaned indigenous one entity to another. |
| Maker of the Note | Entity who signs a note and promises to pay it at maturity. |
| Matching Principle | Prescribes costs to be report in the same duration as the earnings that were earned as a an outcome of the expenses. |
| Materiality Principle | Prescribes that bookkeeping for items that significantly influence financial statement and inferences from them adhere strictly to GAAP. |
| Maturity day of a Note | Date as soon as a note"s principal and interest room due. |
| Payee of the Note | Entity to whom a note is make payable. |
| Principal the a Note | Amount the the signer of a keep in mind agrees to pay earlier when the matures, not including interest. |
| Promissory note (Note) | Written promise to salary a specified amount one of two people on need or in ~ a identify future date; is a keep in mind receivable for the lender however a no payable for the lendee. See more: Wrestling / Enzo And Cass Raw Debut, Enzo Amore And Colin Cassady Make Wwe Main |
| Realizable Value | Expected proceeds from convert an asset right into cash. |
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