See Allowance for Doubtful Accounts.
See Allowance for Doubtful Accounts.
An asset such as cash, accounts receivable, or a note receivable where the amount is a fixed, stated amount. Holding these assets during periods of inflation will result in a loss of purchasing power.
The collection of money (currency, coins, checks). Not to be confused with revenues.
A contra revenue account that reports 1) merchandise returned by a customer, and 2) the allowances granted to a customer because the seller shipped improper or defective merchandise. This of course will reduce the...
The U.S. government agency responsible for federal income tax regulations.
See net realizable value.
See American Institute of Certified Public Accountants.
The amounts reported on the income statement. Because of accrual accounting the net income flows will be different from the cash flow.
A contra liability account arising when the proceeds of a note payable is less than the face amount of the note. The debit balance in this account will be amortized to interest expense over the life of the note.
This is the expression for replacement cost, which is not an acceptable cost flow, since it violates the cost principle. However, an economist and decision makers would argue that the cost to replace the item is the...
One of the amounts used in determining the amount of interest to be capitalized when a company self-constructs certain long-term assets.
Under this method, net income is determined by analyzing the change in owner’s equity. The alternative is the transaction approach in which each transaction is recorded, sorted and stored.
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