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

question 154

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 impairment
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 securities.
e. Cash and assets convertible directly into known amounts of cash, such as investments in 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:

Product Differentiation

The process of distinguishing a product or service from others in the market to make it more attractive to a particular target market.

Perceptual Map

is a visual tool used in marketing to display the position of a brand or product in the minds of consumers relative to competitors.

Minds of Adults

The cognitive processes, understanding, and psychological aspects characteristic of adult individuals.

Market Segmentation

The process of dividing a broad consumer or business market into sub-groups of consumers or segments based on shared characteristics.