Glossary B-C Flashcards
Define
bad debt expense
glossary
The operating expense incurred because of the failure to collect receivables.
glossary
Define
balance sheet
glossary
a statement of the assets, liabilities, and capital of a business or other organization at a particular point in time
glossary
Define
bank reconciliation
glossary
The analysis that details the items responsible for the difference between the cash balance reported in the bank statement and the balance of the cash account in the ledger.
glossary
Define
bond
glossary
An interest-bearing note that requires periodic interest payments, with the face amount to be repaid at the maturity date.
glossary
Define
bond indenture
glossary
The contract between a corporation issuing bonds and the bondholders
glossary
Define
book value of the asset
glossary
The difference between the cost of a fixed asset and its accumulated depreciation.
glossary
Define
boot
glossary
The amount a buyer owes a seller when a fixed asset is traded in on a similar asset.
glossary
Define
business entity concept
glossary
A concept of accounting that limits the economic data in the accounting system to data related directly to the activities of the business
glossary
Define
capital account
glossary
An account used for a proprietorship that represents the owner’s equity.
glossary
Define
capital expenditures
glossary
The costs of acquiring fixed assets, adding to a fixed asset, improving a fixed asset, or extending a fixed asset’s useful life.
glossary
Define
carrying amount
glossary
The book value of bonds payable, computed as the face amount less any unamortized discount or plus any unamortized premium.
glossary
Define
cash basis of accounting
glossary
A basis of accounting in which revenues and expenses are reported on the income statement in the period in which cash is received or paid.
glossary
Define
cash equivalents
glossary
Highly liquid investments that are usually reported with cash on the balance sheet.
glossary
Define
cash flow per share
glossary
The net cash flows from operat- ing activities divided by the number of common shares outstanding.
glossary
Define
cash flows from (used for) financing activities
glossary
The section of the statement of cash flows that reports cash flows from transactions affecting the equity and debt of the business.
glossary
Define
cash flows from (used for) investing activities
glossary
The section of the statement of cash flows that reports cash flows from transactions affecting investments in noncurrent assets.
glossary
Define
cash flows from (used for) operating activities
glossary
The section of the statement of cash flows that reports the cash transactions affecting the determination of net income.
glossary
Define
cash short and over account
glossary
An account which has recorded errors in cash sales or errors in making change causing the amount of actual cash on hand to differ from the beginning amount of cash plus the cash sales for the day.
glossary
Define
chart of accounts
glossary
A list of the accounts in the ledger.
glossary
Define
closing entries
glossary
The entries that transfer the balances of the revenue, expense, and drawing accounts to the owner’s capital account
glossary
Define
closing process
glossary
The transfer process of converting temporary account balances to zero by transferring the revenue and expense account balances to the owner’s capital account, and transferring the owner’s drawing account balance to the owner’s capital account.
glossary
Define
closing the books
glossary
The process of transferring temporary accounts balances to permanent accounts at the end of the accounting period.
glossary
Define
common stock
glossary
The stock outstanding when a corporation has issued only one class of stock.
glossary
Define
common-sized statement
glossary
A financial statement in which all items are expressed as percentages, with no dollar amounts shown.
glossary
Define
compensating balance
glossary
A requirement by some banks requiring depositors to maintain minimum cash balances in their bank accounts.
glossary
Define
comprehensive income
glossary
All changes in stockholders’ equity during a period, except those resulting from dividends and stockholders’ investments.
glossary
Define
consolidated financial statements
glossary
Financial statements resulting from combining parent and subsidiary statements.
glossary
Define
contingent liabilties
glossary
Liabilities that may arise from past transactions if certain events occur in the future.
glossary
Define
contra accounts
glossary
An account offset against another account.
glossary
Define
controling account
glossary
The account in the general led- ger that summarizes the balances of the accounts in a subsidiary ledger.
glossary
Define
corporation
glossary
A business organized under state or federal statutes as a separate business entity.
glossary
Define
cost concept
glossary
A concept of accounting that determines the amount initially entered into the accounting records for purchases.
glossary
Define
cost method
glossary
A method of accounting for bond invest- ments in which the purchase is recorded at original cost, including any fees charged by a broker in acquiring the bonds, and any accrued interest is recorded separately.
glossary
Define
cost of merchandise sold
glossary
The cost of merchandise inventory that is reported as an expense when merchandise is sold; on the income statement of a merchandising business, determined by subtracting ending merchandise inventory from the cost of merchandise available for sale.
glossary
Define
credit
glossary
Amount entered on the right side of an account.
glossary
Define
credit memorandum
glossary
A form used by a seller to inform the buyer of the amount the seller proposes to credit to the account receivable due from the buyer
glossary
Define
credit period
glossary
The amount of time the buyer is allowed in which to pay the seller.
glossary
Define
cumulative preferred stock
glossary
Stock that has a right to receive regular dividends that were not declared (paid) in prior years.
glossary
Define
current assets
glossary
Cash and other assets that are expected to be converted to cash or sold or used up, usually within one year or less, through the normal operations of the business.
glossary
Define
current liabilties
glossary
Liabilities that will be due within a short time (usually one year or less) and that are to be paid out of current assets.
glossary
Define
current ratio
glossary
A financial ratio that measures a company’s ability to pay its current liabilities, computed by dividing current assets by current liabilities.
glossary
