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