Accounting Terminology Listed Below Are Nine Technical Accounting Terms Emphasized in This

question 141

Essay

Accounting terminology
Listed below are nine technical accounting terms emphasized in this chapter.
Mark-to-market
Factoring
Direct write-off
Financial asset
Cash equivalent
Bank reconciliation
Allowance for doubtful accounts
Accounts receivable turnover
Uncollectible accounts expense
Each of the following statements may (or may not) describe one of these technical terms. In the space provided below each statement, indicate the accounting term described, or answer "None" if the statement does not correctly describe any of the terms.
____ a. A transaction in which a business sells its accounts receivables to a financial institution.
____ b. An estimate of the portion of year-end accounts receivable that ultimately will turn out to be uncollectible.
____ c. Schedule explaining any differences between cash balances appearing in the accounting records and in the monthly bank statement.
____ d. Balance sheet valuation standard applicable to investments in marketable securities.
____ e. Cash and assets convertible directly into known amounts of cash, such as marketable securities and receivables.
____ f. A ratio, computed by dividing 365 days by average receivables, that indicates the liquidity of the receivables.
____ g. Method of accounting for uncollectible receivables that fails to match revenues and expenses.

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Definitions:

Unlimited Wants

The economic principle that humans have infinite desires or wants but limited resources to fulfill them.

Scarce

Denotes the fundamental economic problem of having seemingly unlimited human wants in a world of limited resources, which necessitates prioritization of resource allocation.

Choices

Decisions made by individuals or organizations among two or more alternatives.

Rational Government

The concept of a government acting based on reasoned decisions, typically aiming for the most economically efficient outcomes that maximize social welfare.