chap 8 and 9 definitions Flashcards
accounts payable account
amounts owed for products or services purchased on account
short term notes payable account-
used to borrow cash or purchase assets and due within one year
deferred (unearned revenue account)
Business receives cash before services or products are provided to customers
CPLTD account
Amount of long term debt principle payable within the next 12 months
sales tax payable account
Sales tax collected from customers to be readmitted periodically to the state and local governments
contingent liability account
an existing, uncertain situation that might result in a loss
warranty expense account
Based on the matching principle, the company needs to record, warranty expense in the same accounting period as the sale.
Warranty payable account
represents the liability account set up when warranty expense is recognized and is used to account for warranty work performed in the future.
Bonds payable account
Formal debt instrument that obligates the borrower to repay a stated amount, referred to as the principle of the or face amount, at a specified maturity date.
Secured bonds
backed by collateral
unsecured bonds
not backed by collateral
serial bonds
bond issues matures in installment
term bonds
bond issue matures on a single date
Callable Bond
Borrower can pay off bond early at a specified call price
Convertible bonds
Lender can convert bonds into a specified number of shares of common stock
