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Definition
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Term
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Definition
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Term
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Definition
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Term
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Term
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Definition
| accounts receivable-allowance for doubful accounts |
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Term
| Percentage of credit sales method |
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Definition
| net credit sales x % bad debt loss rate |
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Term
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Definition
| beginning ADA + estimated bad debt - write offs |
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Term
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Definition
| Aged A/R x estimated % uncollectible |
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Term
| Accounts receivable turnover ratio |
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Definition
| Net credit sales/Avg net trade receivables |
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Term
| Cash collected from change in A/R |
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Definition
| Sales revenue + decrease in AR or - increase in AR |
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Term
| Average collection period |
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Definition
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Term
Bank reconciliation
Balance per book |
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Definition
| balance per book + deposits by bank - service charge - NSF checks +/- bank errors |
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Term
Bank Reconciliation
balance per bank |
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Definition
| balance per bank + deposits in transit - outstanding checks +/- bank errors |
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Term
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Definition
| estimated ending ADA - current ADA balance |
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Term
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Definition
| Beginning inventory + purchases |
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Term
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Definition
| Beginining inventory + purchases - ending inventory |
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Term
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Definition
| cost of goods available for sale/number of units available for sale |
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Term
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Definition
| cost of goods sold/ average inventory |
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Term
| Cash flow from accounts payable operations |
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Definition
| Net income + decrease in inventory or - increase in inventory |
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Definition
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Term
| differences in cost of goods sold under lifo |
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Definition
| begining lifo reserve-ending lifo reserve |
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Term
| Fixed asset turnover ratio |
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Definition
| Net sales/ avg net fixed assets |
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Term
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Definition
| Sales revenue-(discounts R&A sales discounts |
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Term
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Definition
| cost-accumulated depreciation |
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Term
| Straight line depreciation expense |
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Definition
| Cost-residual value/useful life in years |
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Term
| Units of production depreciation method |
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Definition
| cost - residual value/life in units of production x number of units produced that year |
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Term
| Declining balance depreciation method |
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Definition
| Cost-accumulated depreciation x (2/useful life in years) |
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Term
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Definition
| Purchase price-fair market value of identifiable assets and liabilities |
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Term
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Definition
| Net book value-fair value |
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Term
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Definition
| gross pay - deductions(taxes) |
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Term
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Definition
| current assets-current liabilities |
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Term
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Definition
| principal x interest rate annually x time |
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Term
| Present value of principal |
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Definition
| future value x 1/(1 + i)^n |
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Term
| Future value of Principal |
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Definition
| Present value x (1 + i)^n |
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Term
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Definition
| current asset/current liabilities |
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Term
| Accounts payable Turnover ratio |
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Definition
| Cost of goods sold/Average accounts payable |
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