exam 3 Flashcards
1
Q
Liabilities are classified on the balance sheet as
A
current or long term
2
Q
Par value
A
is the value assigned per share in the corporate charter.
3
Q
salvage value
A
an estimate of a plant asset’s value at the end of its useful life.
4
Q
current liability
A
payable
unearned revenue
payroll taxes
5
Q
long term liability
A
bonds
6
Q
bonds
A
stated rate (contractual rate) market rate
7
Q
stated value = market value
A
face value or par
8
Q
stated value > market value
A
premium
9
Q
biggest risk when using bonds
A
differences in interest
10
Q
original charter
A
how many shares have been authorized (can be sold)
11
Q
Issued
A
newly sold
12
Q
outstanding
A
the stock currently held by all shareholders
13
Q
treasury
A
company buys stock back
contra equity account
14
Q
when to use straight line
A
amortization expense/ intangible asset
15
Q
when to use activity method
A
depletion expense/ natural resourse
