Term
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Definition
| The fee charged by the credit card company for services |
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Term
| Sales Discount (Cash Discount |
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Definition
| A cash discount offered to encourage prompt payment of an account receivable |
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Term
| Sales Returns and Allowances |
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Definition
| A reduction of sales revenues for return of or allowances for unsatisfactory goods |
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Term
| Accounts Receivable (trade recevables) |
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Definition
| Open accounts owed to the business by trade customers |
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Term
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Definition
| Written promises that require anothe rparty to pay the business under specified conditions (amount, time, interest) |
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Term
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Definition
| Bases bad debt expense on an estimate of uncollectible accounts |
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Term
| Bad Debt Expense (doubtful accounts expense, uncollectible accounts expense, provision for uncollectible accounts) |
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Definition
| The expense associated with estimated uncolletible accounts receivable. Part of the selling expense |
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Term
| Allowance for Doubtful Accounts (allowance for bad debts, allowance for uncollectible accounts) |
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Definition
| A contra asset account containing the estimated uncollectible accounts receivable |
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Term
| Aging of Accounts Receivable Method |
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Definition
| Estimates uncollectible accounts based on the age of each account receivable |
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Term
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Definition
| Money of any instruments that banks will accept for deposit and immediate credit to a companys account, such as check, money order, or bank draft |
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Term
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Definition
| Investments with original maturities of three months or less that are readily convertible to cash and whose value is unlikey to change |
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Term
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Definition
| The processes by which a company safeguards its assets and provides reasonable assurance regarding the reliability of the company's financial reporting, the effectiveness and efficiency of its operations, and its compliance with applicable laws and regulations. |
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Term
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Definition
| A month report from a bank that shows deposits recorded, checks cleared, other debits and credits, and a running bank balance |
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Term
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Definition
| The process of verifying the accuracy of both the bank statement and the cash accounts of the business |
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