Examlex
Match the following definitions and terms by placing the number that identifies the best definition in the blank space next to the term.
- A simple account form used as a helpful tool in showing the effects of transactions and events on specific accounts
Direct Cost
Expenses that can be directly attributed to the production of specific goods or services, like raw materials and labor.
Initial Direct Costs
Expenses directly associated with acquiring or originating a loan or insurance policy, which may include processing and sales commissions.
Revenue Recognized
The process of recording revenues in the financial statements when they are earned, which may not coincide with when the cash is received.
Collectibility
The likelihood or ability of a company to collect its accounts receivable from customers.