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Glossary of Terms

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Uncollectible accounts:


Accounts receivable from customers who cannot or will not pay.


Understandability:


Carrying intended meaning; a qualitative characteristic of accounting information.


Unearned revenues:


Revenues received in advance for which the goods will not be delivered or the services performed during the current accounting period; a liability account.


Units-of-Production Method:

Depreciation method by which a fixed amount of depreciation is assigned to each unit of output produced by a plant asset.


Usefulness:


Carrying intended meaning; a qualitative characteristic of accounting information.