Chapter 2 Flashcards
Operatoing cycles
average period of time it takes for a business to pay cash to obtain products or services and then recieve cash from consumers for these products.
Trading investments
in debt securities
Acc recievable
Aret owed to the company by services who puchased products or service on credit.
Notes recievable
Amounts owed to the company by customers or others that are supported by a written promise to repay.
Merchandise inventory
refers to goods held for sale to customers
Prepaid expenes
the cost of expences like rent & insurence paid in advance of use. Current asset because they reflect unused benifits such as office space and insurence coverage avalible for future use within the year.
Non-current assets
are not expected to be converted into cash sold or used up by the business within the year .
Accumulated depreciation
shows the amount of depreciation taken so for over the life of the asset.
carrying amount
the difference between cost accumalated depreciation