| A | B |
|---|
| Accounts Receivable | Amounts due from customers for credit sales. (p. 209) |
| Accounts Receivable Turnover | Measure of both the quality and liquidity of accounts receivable; indicates how often receivables are received and collected during the period; computed by dividing net sales by average accounts receivable. (p. 310) |
| Aging of Accounts Receivable | Process of classifying accounts receivable by how long they are past due for purposes of estimating uncollectible accounts. (p. 289) |
| Allowance for Doubtful Accounts | Contra asset account with a balance approsimating uncollectible accounts receivable; also called Allowance For Uncollectible Accounts. (p. 295) |
| Allowance Method | Procedure that (1) estimates and matches bad debts expense with its sales for the period and (2) reports accounts receivable at estimated relizable value. (p. 294) |
| Available-For-Sale Securities | Investments in debt and equity securities that are not classified as trading securities or held-to-maturity securities. (p. 309) |
| Bad Debts | Accounts of customers who do not pay what they have promised to pay; an expense of selling on credit; also called uncollectible accounts. (p. 293) |
| Contingent Liability | Obligation to make a future payment if, and only if, an uncertain future event occurs. (p. 306) |
| Direct Write-Off Method | Method that records the loss from an uncollectible account receivable at the time it is determined to be uncollectible; no attempt is made to estimate bad debts. (p. 293) |
| Full Disclosure Principle | Principle that requires financial statements (including notes) to report all relevant information about an entity's operations and financial condition. (p. 306) |
| Held-To-Maturity Securities | Debt securities that a company has the intent and ability to hold until they mature. (p. 308) |
| Interest | Charge for using money (or other asset) until repaid at a future date. (p. 301) |
| Maker of a Note | Entity who signs a note and promises to pay it at maturity. (p. 301) |
| Matching Principle | Requires expenses to be reported in the same period as the sales they helped produce. (p. 294) |
| Materiality Principle | Implies that an amount can be ignored if its effect on financial statements is unimportant to users. (p. 294) |
| Maturity Date of a Note | Date when principal and interest of a note are due. (p. 302) |
| Payee of a Note | Entity to whom a note is made payable. (p. 301) |
| Principal of a Note | Amount that the signer of a note agrees to pay back when it matures, not including interest. (p. 301) |
| promissory Note (or Note) | Written promise to pay a specified amount either on demand or at a definite future date. (p. 301) |
| Realizable Value | Expected proceeds from converting an asset into cash. (p. 295) |
| Short-Term Investments | Debt and equity securities that management expects to convert to cash within the next 3 to 12 months (or the operating cycle if longer); also called temporary investmentsd. (p. 306) |
| Trading Securities | Investments in debt and equity securities that the company intends to actively trade for profit. (p. 308) |
| Unrealized Gain (Loss) | Gain (loss) not yet realized by an actual transaction or event such as a sale. (p. 308) |
