Working Capital

3. Current assets – current liabilities
6. Cost of goods sold/Average inventory
8. Collections received in advance of the delivery of goods or performance of service is an example of _______
9. A portion of amounts borrowed to remain on deposit during the period of the loan.
10. A liability whose settlement requires the performance of services rather than the payment of money. (Hint: advanced-purchase airline ticket)
12. Investments reported at _______ are adjusted to reflect both upward and downward changes in value.
13. Under the ________, a loss is recorded when a specific customer account is determined to be uncollectible.
14. Key terms involved in defining the elements of working capital, such as ______ and current.

1. A method that reports only downward adjustments in the value of temporary investments.
2. Prepaid expense (insurance, rents) is an example of _________
4. A method that reports temporary investments at their acquisition cost until disposal.
5. If they want to minimize taxes by choosing LIFO, the _______ rule forces them to publish financial statements that report misleading results.
7. A method of inventory valuation is based on the assumption that current costs should be matched against current revenues.
9. Current assets/Current liabilities
11. The ______ method is a compromise position between FIFO and LIFO.