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The aggressive financing strategy is risky due to its minimum level of net working capital, high dependency on short-term sources of funds, and the changing short-term interest.
Trial Balance
A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals to ensure a company's bookkeeping system is mathematically correct.
Allowance for Uncollectibles
A contra-asset account used to reduce accounts receivable to its net realizable value by estimating the amount of receivables that may not be collected.
Gross Accounts Receivable
The sum of money that a company's customers owe before subtracting any provisions for accounts that might not be collectible.
Net Accounts Receivable
The total amount of money owed to a company for goods or services that have been delivered but not yet paid for, minus any provisions for bad debts.
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