Accounting Terms Test 3 Receivables

Accounting Terms Test 3 Receivables - Cash, Receivables,...

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Cash, Receivables, and Investments Cash- Medium of exchange Cash Equivalent- Any investment that: 1) is readily convertible into a known amount of cash -and- 2) will mature within 3 months or less from the date it was aquired Ex. Treasury bills, CD’s, money market accounts. Bank Reconciliation- The process of reconciling the cash balance shown on the bank Statement with the cash balance shown in a company’s records Petty Cash Fund- an amount of coins and bill kept on hand to pay for minor expenditures Accounts Receivable- An amount owed a by a customer who has purchased the company’s product or service. It is recorded at the time of sale. Net Realizable Value- The amount of cash that is expected to be collected from total or Or gross accounts receivable. Total Accts. Rec. Less: Receivables expected to be uncollected _____________________________________ Net Realizable Value of Receivables Bad Debt Expense- An operating expense. This is where losses from uncollectible Accounts are recorded; Two Methods: Direct Write off and Allowance
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Accounting Terms Test 3 Receivables - Cash, Receivables,...

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