Chapter 2 Flashcards

1
Q

Operatoing cycles

A

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.

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2
Q

Trading investments

A

in debt securities

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3
Q

Acc recievable

A

Aret owed to the company by services who puchased products or service on credit.

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4
Q

Notes recievable

A

Amounts owed to the company by customers or others that are supported by a written promise to repay.

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5
Q

Merchandise inventory

A

refers to goods held for sale to customers

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6
Q

Prepaid expenes

A

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.

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7
Q

Non-current assets

A

are not expected to be converted into cash sold or used up by the business within the year .

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8
Q

Accumulated depreciation

A

shows the amount of depreciation taken so for over the life of the asset.

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9
Q

carrying amount

A

the difference between cost accumalated depreciation

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