Accounting Chapter 4 Vocab

What is "receivables turnover?" Classify, Calculate, and Interpret. – Activity Ratio

Receivables Turnover = [Annual Sales / Average Receivables]

It is considered desirable to have a "receivables turnover" figure close to the INDUSTRY norm

double entry accounting system – every business transaction to be recorded in at least 2 accounts & debits recorded = credits recorded
current – رائج ، متدفق ، حالي
Definition of transaction – A transaction is a documented transfer of economic value between accounting entity and another party

All transactions have a dual aspect,
ex. Inventory increases cash decreases

Permanent Account – An account that is kept open from one accounting period to the next.
Aspects of a Balance Sheet – Assets=Liabilities + Stockholders' Equity
List assets in order of liquidity
List liabilities largest to smallest amount
Allowance for Doubtful Accounts is
A. closed at the end of the fiscal year.
B. an operating expense.
C. a contra asset account.
D. added to Accounts Receivable on the balance sheet. – C
Direct expense – costs that are directly associated with revenue. COGS, Sales commission, shipping
Hyposegmentation of the nucleus is characteristic of which white blood cell anomaly?
fundemental analysis – a method of stock analysis based on the management of the company and the past stock movements
Notes payable – from borrowing cash
Hypоsegmentаtiоn оf the nucleus is chаrаcteristic of which white blood cell anomaly?
Commercial paper – Company borrows from another company rather than the bank

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