Accounting Word Quest

2. An inventory system in which inventory and cost of goods sold are determined at the end of the accounting period.
6. VALUE The estimated amount an asset can be sold for at the end of its useful life.
9. RECEIVABLE Amounts owed by customers from credit sales.
10. A method of estimating uncollectible accounts based on how long receivables have been outstanding.
11. INTEREST Interest calculated on the principal plus accumulated interest.
13. VALUE The value of money at a future date after earning interest.
15. INTEREST Interest calculated only on the original principal.
17. An inventory cost flow method that assumes the earliest purchased goods are sold first.
18. DEBT EXPENSE The expense recognized for estimated uncollectible accounts.
19. EQUIVALENTS Short-term, highly liquid investments that can be converted into known amounts of cash with little risk of changes in value.
20. The systematic allocation of an asset's depreciable amount over its useful life.
21. RECEIVABLE A written promise to pay a specific amount on a certain date.
22. RECEIVABLES The amount remaining after deducting the allowance for doubtful accounts from gross receivables.
23. RECONCILIATION The process of explaining differences between the bank statement and the company's cash records.

1. An inventory system that continuously updates inventory records.
3. The estimated amount of receivables that may not be collected.
4. The original amount of money invested or borrowed.
5. LIFE The period an asset is expected to be available for use by the business.
7. INVENTORY The inventory value available at the start of an accounting period.
8. An inventory cost flow method that assigns the oldest costs to cost of goods sold first.
12. VALUE The value of money at the present date.
14. The cost of inventory sold during an accounting period.
16. CASH A small fund used to pay minor business expenses.
18. STATEMENT A document showing transactions and balances in a bank account.
19. Money readily available for use in a business.