Key Terms

Chapter 7 - Key Terms

1. Allowance for doubtful accounts

2. Cash equivalents

3. Cash management

4. Compensating balance

5. Default

6. Direct write-off method

7. Fair value accounting

8. Financial assets

9. Gain

10. Line of credit

11. Loss

12. Marketable securities

13. Net realizable value

14. Unrealized holding gain (or l0ss) on investments