Please describe each of the following in your OWN words. DO NOT COPY AND PASTE F
ID: 2379747 • Letter: P
Question
Please describe each of the following in your OWN words. DO NOT COPY AND PASTE FROM ONLINE SOURCES.
a.
Short-Term Marketable Securities
b.
Accounts Receivable net realizable value
c.
Accounts Receivable Bad debts/uncollectible accounts
d.
Notes Receivable Interest accrual
Please describe each of the following in your OWN words. DO NOT COPY AND PASTE FROM ONLINE SOURCES.
a.
Short-Term Marketable Securities
b.
Accounts Receivable net realizable value
c.
Accounts Receivable Bad debts/uncollectible accounts
d.
Notes Receivable Interest accrual
Explanation / Answer
a) Short term means less than one year period. Marketability refers to how easy it is to convert an asset to cash.
b) Accounts receivables meanst that amounts owed by customers on account. Accounts receivable net realizable value is equl to accounts receivables minus uncollectible accounts.
c) Uncollectible accounts are also called as bad debts. Bad debts are debts not cleared by the debtors.
d) Interest accrual means to be receivable interest on notes receivable.
Interest on notes receivable can be calcultating by using the formula:
The formula for computing interest on notes receivable = Face value x Interest rate x Time