Understanding Algorithmic Complexity

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Questions and Answers

What type of sales are made 'on account'?

  • Wholesale Sales
  • Direct Sales
  • Cash Sales
  • Credit Sales (correct)

If collection is reasonably assured, can revenue be recorded?

  • No, never
  • Only if approved by auditor
  • Yes (correct)
  • Only partially

What is the term for credit sales that are not expected to be collected?

  • Credit Revenue
  • Bad Debt (correct)
  • Good Debt
  • Sales Revenue

What do companies need to do to recognize revenue for credit sales?

<p>Have a reasonable estimate of uncollectible revenue (D)</p> Signup and view all the answers

Where is the 'allowance for doubtful accounts' estimated?

<p>Balance Sheet (D)</p> Signup and view all the answers

What is the classification of 'allowance for doubtful accounts' on the balance sheet?

<p>Contra Asset (B)</p> Signup and view all the answers

On which financial statement is 'bad debt expense' estimated?

<p>Income Statement (B)</p> Signup and view all the answers

Where does allowance for doubtful accounts differ from?

<p>Bad Debt Expense (D)</p> Signup and view all the answers

In the journal entries, what occurs during the adjusting entry?

<p>Estimating the amount of accounts receivable that will never be collected. (D)</p> Signup and view all the answers

When Lloyd Christmas Corp. makes a credit sale, what journal entry is made?

<p>Debit Accounts Receivable, Credit Sales Revenue (C)</p> Signup and view all the answers

Flashcards

Allowance for Doubtful Accounts

An estimate on the balance sheet of the portion of accounts receivable that will not be collected.

Bad Debt Expense

Estimate on the income statement of the portion of revenue from a certain period that will never be collected.

Revenue Recognition

Revenue can only be recorded if collection is reasonably assured.

Allowance for doubtful accounts (as contra asset)

Contra assets that reduce the value of accounts receivable on the balance sheet, resulting from the bad debt expense.

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Study Notes

  • Algorithmic complexity measures the resources an algorithm needs to solve a problem.
  • It is used to compare algorithm efficiency and predict performance as input grows.

Time Complexity

  • Time complexity measures how long an algorithm takes to run based on input size.
  • Big O notation expresses the upper bound of the growth rate.
  • Common time complexities include:
    • O(1) Constant Time: Same time regardless of input size.
    • O(log n) Logarithmic Time: Time increases logarithmically with input size.
    • O(n) Linear Time: Time increases linearly with input size.
    • O(n log n) Log-Linear Time: Time increases proportionally to n times the logarithm of n.
    • O(n^2) Quadratic Time: Time increases quadratically with input size.
    • O(2^n) Exponential Time: Time increases exponentially with input size.

Space Complexity

  • Space complexity measures the memory space an algorithm needs based on input size.
  • It's expressed using Big O notation.
  • Common space complexities include:
    • O(1) Constant Space: Constant memory regardless of input size.
    • O(n) Linear Space: Linear memory with input size.
    • O(n^2) Quadratic Space: Quadratic memory with input size.

Big O Notation

  • Big O notation describes the asymptotic behavior of functions.
  • In computer science, it classifies algorithms by how running time or space grows with input size.
  • Rules for determining Big O complexity:
    • Ignore constant factors: O(2n) becomes O(n).
    • Ignore lower order terms: O(n^2 + n) becomes O(n^2).
    • Consider the worst-case scenario: Analyze the maximum operations the algorithm might perform.
  • Operation Complexities:
    • Best-case: O(1)
    • Average-case: O(n)
    • Worst-case: O(n)
    • Space complexity: O(1)
  • Operation Complexities:
    • Best-case: O(1)
    • Average-case: O(log n)
    • Worst-case: O(log n)
    • Space complexity: O(1)

Common Data Structure Operations

  • The table showing data structure operations and complexities show various data structure, operations, and Best/Average/Worst case operations
  • Examples include Array, Linked List, stack, queue, Binary search tree, hash table etc

Conclusion

  • Understanding algorithmic complexity is essential for designing efficient and scalable software.
  • Analyzing time and space complexity helps developers choose algorithms for different tasks.

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