exam 3 Flashcards
Liabilities are classified on the balance sheet as
current or long term
Par value
is the value assigned per share in the corporate charter.
salvage value
an estimate of a plant asset’s value at the end of its useful life.
current liability
payable
unearned revenue
payroll taxes
long term liability
bonds
bonds
stated rate (contractual rate) market rate
stated value = market value
face value or par
stated value > market value
premium
biggest risk when using bonds
differences in interest
original charter
how many shares have been authorized (can be sold)
Issued
newly sold
outstanding
the stock currently held by all shareholders
treasury
company buys stock back
contra equity account
when to use straight line
amortization expense/ intangible asset
when to use activity method
depletion expense/ natural resourse
outstanding
stock currently held by shareholders
allowance
contra asset account
shareholders equity split
retained earnings
contributed capital
contributed capital
stock
stock
authorized shares
issued shares
outstanding shares
treasury stock (par value)
amortization
the using up of an intangible account
straight line
depletion
the using up of natural resources
straight line positive and negative
positive: quick and easy
negative: not accurate
* *same depreciation every year**
When an uncollectible account is recovered after it has been written off, which of the following accounts will be credited in the process?
Accounts Receivable and Allowance for Doubtful Accounts
Notes receivable are reported in the current assets section of the balance sheet at
cash (net) realizable value.
double declining
calculates annual depreciation expense based on book value at the beginning of each year?
Stated value (less than) market value
Discount
