acct 2 5-8

maturity value

sum of principal plus interest due at matuity

net realizable value

net value company wants to collect from ar. ar-allowance for bad debt

periodic inventory system

physical count of inventory

perpetual inventory system

running computerized count of merchandise inventory

2/10 n/30 means

2% discount in 10 days, full price due in 30 days

fob shipping point

buyer takes ownership when goods leave seller place, buyer pays freight

fob destination point

buys owns goods at delivery point, seller pays freight

COGS

Beginning Inventory+Net Purchases−Ending Inv

consistency principle

use same accounting methods and procedures period to period

disclosure principle

financial statements must report enough info for outsiders to make knowledgable decsisons about the company

materiality principle

company must perform strictly proper accounting for items that are significant to the business fnanical statements

conservatism principle

businesses should report the least favorable figures in the financial statements when two options are presented

during inflation lifo has

the highest cogs

during inflation fifo has

the lowest cogs

internal control

org plan and related measures to safeguard assets, ensure employees follow company policy, promote operational efficiency, reliable accounting records

seperation of duties

divide responsiblites between 2 or more peple to limit fraud

gaap requires

allowance method for uncollectables

allowance for bad debts is a ____ to AR

contra

what credit method is this1

net

what credit method is this2

gross

CRIME ( C )

control procedures

CRIME ( R )

risk assesment

CRIME ( I )

info systems

CRIME ( M )

monitoring controls

CRIME ( E )

ENVIORMENT