Exam 3 Financial Accounting Review Flashcards
International Accounting
Use their own currencies
What are 2 characteristics of the Available for Sale Method?
Initially recorded at cost
Reported at market value on balance sheet
Long Term Investments are recorded where?
On the balance sheet
What is another name for Long Term Bond Investments?
Held To Maturity Investments
Issued
Number of shares sold to shareholders
Principal
Amount borrowed and usually in $1000 units
Hedging
Insurance and limits or qualifies by exceptions
Term Bond
All bonds mature at the same date
Stockholder elect who?
Board of Directors
Cumulative (in terms of preferred dividends)
Any unpaid dividends are carried forward until paid
How are Long Term Bond Investments reported?
Reported at amortized cost
What is 1 characteristics of a contra equity account in terms of Treasury Stock?
Reduces shareholders equity and assets
If the contingent liability is probable what happens when recording it?
Record if amount can be estimated
Authorized
Maximum number of shares a company can issue
What 3 things increase debits (ADE)
Assets
Dividends
Expenses
What 2 things is the Preferred Dividends rate expressed as?
Percent of par value
Dollar amount per share
What are the 2 parts of stockholders equity?
Paid In Capital
Retained Earnings
What are 6 examples of known amounts?
Accounts payable Salaries tax payable Short Term Notes Payable Payroll Liabilities Accrued Liabilities Unearned Revenues
What are 2 characteristics of Treasury Stock?
Company buys stock back
Contra-equity account
Outstanding
Number of shares currently in shareholders possession
Carrying Amount =
Face Value - Discount Balance
Maturity Date (Bond Terms)
Date bond is due