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

question 80

Essay

Accounting terminology
Listed below are nine technical accounting terms emphasized in this chapter.
Fair value accounting
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.

Understand how demand manipulation strategies, like advertising and promotion, influence aggregate planning.

Acknowledge the complexity of finding an ideal mixed strategy in aggregate planning due to numerous possible strategies.

Recognize the role of tactical decisions in aggregate planning, including loading, sequencing, expediting, and dispatching.

Calculate the effective annual rate (EAR) for different compounding frequencies.

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Definitions:

Residual Income

The income that remains after subtracting from the net operating income the cost of capital charged for utilizing the capital in generating the net operating income.

Minimum Required Rate

The lowest acceptable rate of return on an investment, often used in the context of capital budgeting.

Investment Opportunity

A chance to invest capital in a project or asset with the expectation of generating a favorable return on investment.

Residual Income

The income remaining after deducting all expenses, taxes, and costs of capital from net operating income.