Shared Flashcard Set

Details

COMM 2010
COMM 2010
28
Accounting
Undergraduate 2
03/02/2010

Additional Accounting Flashcards

 


 

Cards

Term
Revenue Recognition
Definition
1. the seller must have substantially performed its obligations to the customer, 2. the seller must have obtained an asset from the customer that it can reliably measure
Term
Expense Recognition
Definition
the firm recognizes expenses when it consumes assets
Term
Sales Returns
Definition
The physical return of merchandise. The seller often accumulates amounts of such returns in a temporary revenue contra account.
Term
Multiple Deliverable Contract
Definition
Term
Percentage-of-completion method
Definition
recognizing revenues and expenses on a job, order, or contract in proportion to the costs incurred for the period/total costs expected to be incurred,
Term
accounts receivable, trades receivable
Definition
the amount owed to a seller by customers who have purchased goods and services on credit
Term
uncollectible account
Definition
an account receivable that the seller never collects
Term
allowance method
Definition
a method attemtpting to match all expenses of a transaction with their associated revenues, usually involves a debit to expense and a credit to an estimated liability
Term
allowance for uncollectibles account
Definition
a CONTRA ACCOUNT that shows the estimated accounts receivable amount that the firm expects not to collect
Term
accounts receivable, Gross Account
Definition
claims against a debtor before adjustments are made for uncollectable accounts and bad debt expense
Term
accounts receivable, Net Account
Definition
claims against a debtor after adjustments are made for uncollectable accounts and bad debt expense
Term
Bad Debt Expense, Provision for Bad Debts, Provision for uncollectible accounts
Definition
the name for an account debited in both the allowance method for uncollectible accounts and the direct write off method
Term
Control Account
Definition
a summary account with totals equal to those of entries and balances that appear in individual accounts in a subsidiary ledger...ie accounts receivable
Term
Writing Off
Definition
to charge an assest to expense or loss, that is to debit expense and credit the asset
Term
Percentage-of-sales procedure
Definition
recognizing revenues and expenses on a job, order or contract in proportion to the costs incurred for the period/total costs expected to be incurred
Term
Aging-of-accounts receivable procedure
Definition
the process of classifying acocnts receivable b the time elapsed since the claim came into existence for the purpose of estimating the amount of uncollectible accounts receivable as of a given date
Term
accounts receivable turnover ration
Definition
net sales on account/average accounts receivable
Term
days receivables outstanding
Definition
accounts receivable turnover ratio divided by 365 days a year
Term
securitization
Definition
the bundling of financial assets into groups that can become the basis for raising cash.
Term
sales returns
Definition
the physical return of merchandise. seller often accumulates amounts of such returns in a temporary revenue contra account
Term
deffered performance obligations, advances from customers, deferred revenues, unearned revenues
Definition
the seller has promised the buyer that after the sale seller will provide further goods or services as part of the initial sale
Term
installment method
Definition
recognizing revenue and expense from a sales transaction in proportion to the faction of the selling price collected during a period
Term
gross margin percentage, gross margin
Definition
100 X (1 - cost of goods sold/net sales) = 100 X (gross margin/net sales)
Term
cost recovery method
Definition
a method of revenue reconition that credits inventory as the firm receives cash collections and continues until the firm has collected cash equal to the sum of all costs.
Term
progress payments
Definition
Term
percentage-of-completion method
Definition
recognizing revenues and expenses on a job in proportion to the costs incurred for the period divided by total costs expected to be incurred for the job
Term
construction in progress, construction in process account
Definition
Term
completed contract method
Definition
recognizing revenues and expenses for ajob or order only when the firm finishes it, except that when the firm expes a loss on the contract, the firm recognize all revenues and expenses in the period when the firm first foresees a loss.
Supporting users have an ad free experience!