Online Accounting Dictionary

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Net income is the excess revenues over expenses for an accounting period.
Net loss is the opposite of net income. Net loss results from the excess expenses over revenues for an accounting period.
Net realizable value is what the company expects to collect from its customers. This value is determined by subtracting the estimate of uncollectible accounts (allowance for doubtful accounts) from accounts receivable.
Net worth is the same as shareholders' equity. Refer to Equity definition.
Normal costing is a product costing system when a company measures the actual costs of direct materials and direct labor, but uses predetermined factory overhead rates to measure the factory overhead cost for a period. In other words, throughout the production time, the company measures and records the actual costs of direct materials and direct labor used, but it estimates a portion of factory overhead to be assigned to the product(s) (i.e. factory overhead applied). Normal costing system provides a timely cost estimate of a product or batch of products.
Note payable is an obligation in the form of a written promissory note signed by the borrower. The note includes the information on the rate of interest, the term of maturity, and collateral pledged to secure the loan.
Notes receivable are claims that require a formal instrument as proof of the debt and usually provide for payment of interest by the debtor. Notes receivable are often long-term claims to be settled in more than 90 days.

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