Accounting Chp. 4
Callable bond
A bond if I can be redeemed called in and paid by the issuer before the maturity date
Registered bond
A bond issued in the name of the owner or buyer of the bond
Term bond
A bond maturing at a specified date at its full face value
Serial bond
A bond spreading the payment of its face value over several maturity dates
Convertible bond
A bond that can be converted into common stock
Debenture bond
A bond with no collateral behind it
Bearer bond
A bond with no registered owners name
Prepaid expenses
A current asset account for items paid in advance
Bond indenture
A document that explains the rights and privileges of a bond holder in any special terms and features of the bond
Tangible assets
A long-lived assets having physical substance examples are land, buildings, and equipment,
Hybrid liability
A long-term liability in which part of the liability is current and part is long-term
Property and equipment
A non-current asset category that includes long-lived tangible assets
Other assets
A noncurrent assets category that includes long-lived intangible assets
Equity accounts
A section of the balance sheet showing the financial interest of the owners
With drawls account
A temporary account used to accumulate the owners drawings of cash or other assets from a proprietorship or partnership
Par value
A value for common stock selected by the issuing corporation when it files it's articles of incorporation
Accumulated depreciation
And Acct containing the sum of depreciation allocations for all prior years to the present
Good will
And Acct reflecting the value of intangible assets such as a business is superior products or services. It can be recorded if it is the result of the purchase of a business and the price paid is in excess of the fair market value of the purchase businesses assets.
Allowance for doubtful accounts
And Acct representing an estimate of potential receivables that may become uncollectible's. It is a contra asset account because it reduces accounts receivable
Capital account
And equity account showing the financial interest of owners. Used for proprietorships and partnerships.
Donated capital
Assess received by the corporation as a gift
Long lived assets
Assets with a useful life exceeding 12 months
Secured bonds
Bonds backed with collateral a specific assets also called mortgage bonds
Current assets
Cash or assets that are convertible to cash within 12 months of the balance sheet date
Retained earnings
The lifetime earnings of a corporation not distributed to shareholders in the form of dividends declared
Face value
The maturity value of a bond
Marketable securities
Trading securities that are readily marketable and earmarketed by management for conversion into cash
Accrued payables
Unrecorded liabilities for expenses that have been incurred but not yet paid during the financial reporting.
Sinking fund
With regard to bonds cash or other assets periodically put aside to retire bond debt
Premium
With regard to bonds, the amount by which the initial selling price is greater than the face value of the bonds
Accounts receivable
The amounts owed to a firm by its customers
Maturity date
The date at which the issue I have a bond is obligated to pay the bonds face value to the bondholder
Organization costs
Costs involved with illegal formation of a business
Investments
In accounting, a balance sheet category that does not include short-term investments. The item most likely to appear in this category is the purchase corporate stock of affiliated companies or other companies for the purpose of influence or control. Also included our securities failing the short term investment test, land held for expansion or sale, and restricted cash accounts
Long-term liabilities
Liabilities do after 12 months of the balance sheet date
Intangible assets
Long live the assets having no physical substance but conveying certain rights to the owner
Fixed assets
Noncurrent assets that have a relatively pretty permanent nature, or tangible, and are used to generate sales
Current portion of long-term debt
Portion of long-term liabilities that is due within 12 months of the balance sheet date
Notes receivable
Promise Siri notes promises to pay made payable to a company.
Short-term investments
Rattalee marketable securities that management can still should the need for cash arise
Treasury stock
Reacquired stock previously issued by the corporation
Bond certificate
Tangible evidence of ownership of a bond, usually a printed form with information about the bond
Additional paid in capital
The amount paid by stockholders in excess of the par or stated value of a stock