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accounting 7
accounting chapter 7 WGU C213
| Term | Definition |
|---|---|
| bad debt | when a customers are granted credit and some don't pay (collect on receivables) |
| bookkeeping costs | approving potential customers for credit using credit history, verifying income and preexisting obligations |
| carrying costs | cash invested in certificates of deposit or short-term investment securities can earn a return |
| credit card sales | businesses that accept finance or credit as payment is seen the same as a cash sale. |
| credit period | company grants credit and sets a credit period where it needs to be collected or paid back |
| sales discounts | are cash reductions offered to customers who purchase merchandise on account and who pay their bill early |
| cash budget | an important tool in helping management plan its cash needs |