Term
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Definition
| A receivable arising from the sale of goods or services with a verbal promise to pay. |
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Term
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Definition
| A form used to categorize the various individual accounts receivable according to the length of time each has been outstanding. |
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Term
| Allowance for Doubtful Accounts |
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Definition
| A contra-asset account used to reduce accounts receivable to its net realizable value. |
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Term
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Definition
| A method of estimating bad debts on the basis of either the net credit sales of the period or the accounts receivable at the end of the period. |
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Term
| Available-for-sale Securities |
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Definition
| Stocks and bonds that are not clasified as either held-to-maturity or trading securities. |
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Term
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Definition
| The general ledger account that is supported by a subsidiary ledger. |
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Term
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Definition
| Securities issued by corporations and governmental bodies as a form of borrowing. |
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Term
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Definition
| The recognition of bad debts expense at the point an account is written off as uncollectible. |
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Term
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Definition
| Securities issued by corporations as a form of ownership in the business. |
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Term
| Held-to-Maturity Securities |
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Definition
| Investments in bonds of other companies in which the investor has the positive intent and the ability to hold the securities to maturity. |
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Term
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Definition
| The party that agrees to repay the payee the money from a promissory note at some future date. The borrower of the money recording a note payable. |
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Term
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Definition
| The date that the promissory note is due. |
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Term
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Definition
| The principal amount of the note plus the accumulated interest the maker owes the payee on the maturity date. |
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Term
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Definition
| A liability of the maker resulting from the signing of a promissory note. |
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Term
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Definition
| An asset of the payee resulting from the acceptance of a promissory note from another company. |
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Term
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Definition
| The party that will receive the money from the maker of a promissory note at some future date. The lender of the money records a note receivable. |
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Term
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Definition
| The amount of cash lent by the payee to the maker of the note. |
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Term
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Definition
| A written promise to repay a definite sum of money on demand or at a fixed or determinable date in the future. |
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Term
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Definition
| The detail for a number of individual items that collectively make up a single general ledger account. |
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Term
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Definition
| The length of time a note is outstanding covering the period of time between the date of issuance of the note and the maturity date. |
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Term
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Definition
| Stocks and bonds of other companies bought and held for the purpose of selling them in the near term to generate profits on appreciation in their price. |
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