accounting ch4

accounting ch4 - Acid-test ratio quick ratio quick...

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Acid-test ratio – quick ratio, quick assets (cash, short-term investments, and current receivables) divided by current liabilities Cash discount – encourages buyers to pay earlier Cost of goods sold – cost of buy and preparing merchandise Credit memorandum – informs the buyer of the seller’s credit to the buyer’s accounts receivable Credit period – time before full payment is due Credit terms – amounts and time of payments for a buyer from a seller Debit memorandum – informs the seller of a debit made to the sellers account in the buyers records Discount period – period where the seller offers the buyer the discount for paying earlier EOM – end of month FOB – free on board, determines who pays transportation costs FOB shipping point/factory – buyer takes responsibility when it leaves the sellers business FOB destination – seller takes responsibility until it arrives at its destination General and administrative expenses - support a company’s overall operations and include expenses
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This note was uploaded on 02/05/2009 for the course BMGT 220 taught by Professor Bulmash during the Fall '08 term at Maryland.

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accounting ch4 - Acid-test ratio quick ratio quick...

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