Accounting concepts

4. sale a transaction where goods are provided now but payment is received later
5. receivables a report that groups receivables by how long they have been outstanding
6. the difference between revenue and expenses
8. account a receivable that has not been paid by the due date
12. a resource owned by a business that provides future economic benefit
16. receivable money owed to a business by customers who bought goods on credit
17. ledger detailed record of individual customer balances
18. income earned from the normal operations of a business
19. note issued to reduce the amount a customer owes due to returns or errors
21. invoice document issued to record a credit sale and show the amount owing
22. the most liquid asset used to settle transactions immediately

1. debts expense the cost of receivables that are unlikely to be collected
2. realizable value the amount expected to be collected after deducting uncollectible debts
3. period the amount of time allowed for a customer to pay their debt
7. turnover a ratio measuring how efficiently a business collects its receivables
9. the owner’s claim on the assets of the business
10. note issued to increase the amount owed by a customer
11. discount a reduction in the listed price before recording the transaction
13. costs incurred in order to earn revenue
14. account summary account that totals all receivables in the general ledger
15. an obligation the business must pay in the future
19. discount a reduction offered to encourage early payment
20. for doubtful debts estimated amount of receivables that may not be collected