Review of Week 11&12

____ are investments in the form of debt or equity that the management of the company wants to actively purchase and sell to make profit in the short term with securities they believe are going to increase in price, these securities can be found on the balance sheet at the fair value on the balance sheet date.

• Deposit in transit

• Trading securities

• Miscellaneous expense

• Outstanding checks

An ____ is a contra account that nets against the total receivables presented on the balance sheet to reflect only the amounts expected to be paid.

• Accounts receivable

• Accumulated depreciation

• allowance for doubtful accounts

• Unearned revenue

A _____ is a person who borrows money on a promissory note.

• payee

• maker

• lender

_____ are an example of a bank charge that is made for payment of a note at some point prior to maturation.

• Interest-bearing notes

• Proceeds of the discounted note

• Bank discounts

• Note receivables

A ____ is a potential financial liability that may occur in the future. It's included in a financial statement if the liability is likely to occur and its amount can be accurately estimated.

• current liability

• contingent liability

• note payable

• non-current liability

_____ is calculated by dividing your net credit sales by your average accounts receivable.

• Debt ratio

• Accounts receivable turnover ratio

• Quick ratio

• Days' sales in receivables