Cash and Receivables Accounting: Recognition, Valuation, and Discount Methods

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Finance - Personal Finance

andrsonztdc Created by 10 mon ago

Cards in this deck(38)

Which financial instruments are included in the category of cash, such as _____ and currency, checking accounts, and bank drafts?

What are highly liquid investments that can be converted to cash within 90 days, such as _____ paper and T-bills?

Receivables are classified as current if they are expected to be collected within _____ year.

Trade receivables consist of accounts receivables and notes receivables, valued at _____ value.

The net realizable value (NRV) is calculated as Accounts Receivable minus _____ for Doubtful Accounts.

Revenue is recognized when the _____ obligation is fulfilled.

A trade (quantity) discount is offered to customers to encourage them to _____ more.

A cash (sales) discount is provided to prompt customers to send _____ faster.

The net method of cash discounts assumes the customer will _____ the discount.

The gross method of cash discounts assumes the customer will _____ take the discount.

The Allowance for Doubtful Accounts is classified as a _____-asset account.

Bad Debts Expense can be based on sales or accounts _____.

Income Statement Bad Debts are calculated as a percentage of net _____ sales.

Balance Sheet Bad Debts are calculated as a percentage of outstanding accounts _____

The Direct Write Off Method cannot be used under _____ accounting standards.

Secured Borrowing involves using accounts receivable as _____ for a loan.

Factoring involves transferring all risks and benefits of ownership, often referred to as a sale _____ recourse.

Securitization involves transferring accounts receivable to another entity for use as _____ for financial securities.

An interest-bearing note has a stated _____ rate.

A non-interest bearing note does not have an interest rate written on the face, and its face amount is the _____ value.

Bank errors are considered the bank's responsibility and do not require _____ entries.

Inventories are a current asset consisting of finished goods, raw materials, and _____-in-process.

Manufacturing Company Inventory Reporting involves counting beginning inventory and calculating net _____ and ending inventory.

Cost of Goods Sold (COGS) is calculated as Beginning Inventory plus Purchases minus _____ Inventory.

A periodic inventory system updates inventory _____ once in a while.

A perpetual inventory system updates inventory _____.

The basic criterion for balance sheet inventory is economic control rather than physical possession or legal ownership, including _____ Shipping Point and Destination Point.

Manufactured Inventory Cost includes direct costs like raw materials and direct labor, and indirect costs like manufacturing _____

The Gross Price Method assumes the customer will _____ take the initial discount.

The Net Price Method assumes the customer will _____ take the initial discount.

Inventory is calculated at the lower of cost or _____ (LCM).

The upper (ceiling) constraint ensures that market value should not be more than _____ value.

The lower (floor) constraint ensures that market value should not be less than the net realizable value minus normal _____

The purpose of the upper constraint is to prevent overstatement of obsolete or damaged inventory and understatement of _____

The purpose of the lower constraint is to prevent understatement of inventory and overstatement of _____

The Gross Profit Method estimates inventory cost by assuming constant growth profit, calculated as Gross Profit divided by net _____

Inventory estimation is used for interim reporting, audit purposes, estimating destroyed inventory, incomplete records, and _____

If prices are falling, the results from the use of FIFO and LIFO are reversed, with LIFO reporting the lowest net income and FIFO the _____

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