Chapter 5 Flashcards
1
Q
Credit Sales
A
transfer product/services to customer while bearing risk of collecting payment
2
Q
Net Revenues
A
company’s total assets less any discounts, returns, and allowances
3
Q
Trade Discounts
A
reduction in price of a product/service (incentive to larger customers)
4
Q
Net Realizable Value
A
the amount of cash the firms expects to collect from accts. receiveable
5
Q
Allowing Method
A
Requires companies to allow for the possibility that some accounts will be uncollectible
