Term
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Definition
| Transactions and events that involve selling products or services and incurring the necessary expenses associatied with the primary activites of the business |
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Term
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Definition
| Transactions and events that involve the purchase and sale or property, plant and equipment, and other assets not generally held for resale. |
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Term
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Definition
| Transactions and events whereby resources are obtained from, or repaid to, owners(equity financiing) and creditors(debt financing). |
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Term
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Definition
Debit: Accouts Receivalbe
Credit: Sales |
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Term
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Definition
Debit: Cash
Credit: Accounts Receivable |
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Term
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Definition
Debit: Sales Returns and Allowances
Credit: Accounts Receivable |
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Term
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Definition
Debit: Bad Debt Expense
Credit: Sales Returns and Allowances |
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Term
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Definition
| The process of recording revenue in the accounts records; occurs after the work has been substantially completed and cash collection is reasonbly assured. |
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Term
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Definition
| A reduction in the selling price allowed if payment is received within a specified period. |
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Term
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Definition
| An Account that is offset or deducted from another account. |
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Term
| Sales Returns and Allowances |
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Definition
| A contra-revenue account in which the return of, or allowance for reduction in the price of, merchandise previously sold is recorded. |
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Term
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Definition
| Total recorded sales before sales discounts and sales returns and allowances. |
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Term
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Definition
| Gross Sales less sales discounts and sales returns and allowances. |
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Term
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Definition
| Coins, currency, money orders, checks, and funds on deposit with financial institutions. |
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Term
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Definition
| An uncollectable account receivable. |
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Term
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Definition
| An Account that represents the portion of the current periods credit sales that are estimated to be uncollectable. |
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Term
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Definition
| The recording of estimated losses due to uncollectable accounts as expenses during period in which the sales occured. |
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Term
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Definition
| A contra account, deducted from Accounts Receivable, that shows the estimated losses from uncollectible accounts. |
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Term
| Aging accounts receivable |
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Definition
| the process of categorizing each account receivalbe by the number of days it has been outstanding. |
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Term
| accounts receivalbe turnover |
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Definition
| A measure used to indicate how fast a company collects its receivables; Sales Revenue/Average Accounts Receivable |
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Term
| Average Collcetion Period |
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Definition
| A measure of the average number of days it takes to collect a credit sale; 365/Accounts Receivable Turnover. |
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Term
| foreign currency transaction |
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Definition
| A sale in which the price is denominated in a currency other than the currency of the seller's home country. |
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