Shared Flashcard Set

Details

Principles of Financial Accounting
Chapter 9
20
Accounting
Undergraduate 2
03/01/2011

Additional Accounting Flashcards

 


 

Cards

Term
Commercial Paper
Definition
Unsecured loans sold to the public, usually through professionally managed investments firms, as  a means of borrowing short-term funds.
Term
Commitment
Definition
A legal obligation that does not meet the technical requirements for recongintion as a libaility.
Term
Compound Interest
Definition
The interest cost for two or more periods when after each period, the interest of that period is added to the amount on which interest is computed in future periods.
Term
Contingent liability
Definition
A potential liability that arises from a past transaction and is dependent on a future event.
Term
Current Liabilities
Definition
Debts and obligations that a company expects to satisfy within one year or within the normal operating cycle, whichever is longer.
Term
Definitely determinable liabilities
Definition
Current liabilities that are set by contract or statute and that can be measured exactly.
Term
Estimated liabilities
Definition
Definite debts or obligations whose exact amounts cannot be know until a later date.
Term
Future value
Definition
The amount an investment will be worth at a future date if invested at compund interest.
Term
Interest
Definition
The cost of using money for a specific period.
Term
Line of credit
Definition
An arrangement with a bank that allows a company to borrow funds as needed.
Term
Long-term liabilities
Definition
Debts and obligations due beyond one year or beyond the normal operationg cycle.
Term
Ordinary annuity
Definition
A series of equal payments made at the end of equal intervals of time, with compound interst on the payments.
Term
Present value
Definition
The amount that must be invested today at a given rate of interest to produce a given future value.
Term
Salaries
Definition
Compensation of employees at a monthly or yearly rate.
Term
Simple Interest
Definition
The interest cost for one or more periods when the amount on which the interest is computed stays the same from period to period.
Term
Time value of money
Definition
The cost or benefits derived from holding or not hoding money over time.
Term
Unearned revenue
Definition
Revenues received in advance for goods or services that will not be delivered during the current accounting period.
Term
Wages
Definition
Compensation of employees at an hourly rate.
Term
Days' Payable
Definition

How long, on average, a company takes to pay its accounts payable,

365 ÷ Payables Turnover.

Term
Payables Turnover
Definition

The number of times, on average that a company pays its accounts payable in an accounting period;

(Cost of Goods Sold +/- Change in Merchandise Inventory)

÷

Accounts Payable.

Supporting users have an ad free experience!