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Definition
| Major assets acquired for use in continuing operations of a business. Property, plant and equipment. Natural resources and intangibles. |
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Definition
| Includes oil deposits, coal deposits and timber. |
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Definition
| One that does not have physical substance. |
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| May be measured as the excess of the purchase price of an entity over the sum of the fair values of all its identifiable assets less its liabilities. (Intangible) |
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Term
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Definition
| Systematic allocation of the cost of a fixed asset, less salvage value, over its useful life. |
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Term
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Definition
| A contra account that appears as an offset or deduction from the related asset account in the balance sheet. |
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Definition
| Cost less accumulated depreciation. |
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Term
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Definition
| Extend the useful life or quality of services provided. |
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Term
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Definition
| Ordinary maintenence, repairs and other items necessary for the operation and use. |
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Term
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Definition
| Writing off or amortizing the cost of natural resources over the periods that benefit their use. |
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Term
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Definition
| Associated with intangibles. |
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Term
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Definition
| The expense that occurs from customer's failure to pay their debts to the firm. |
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Term
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Definition
| A contra account that reflects the portion of the accounts receivable that are expected to be uncollectible. |
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Term
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Definition
| Method firms use to safeguard assets, enhance reliability, promote effedctive operations and ensure compliance. |
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Term
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Definition
| An analysis made to identify and account for all items that cause differences between the cash balance as shown on the bank statement and the cash balance as it appears in the firm's accounting records. |
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Term
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Definition
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Term
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Definition
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Term
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Definition
| Interest is computed on the principal amount only, Interest stated as an annual percentage rate. |
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Term
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Definition
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Term
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Definition
| The value of a note at it's maturity. |
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Term
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Definition
| Interest computed on both the principal and previously earned interest that has not been paid or withdrawn. The more frequently the interest is compounded, the higher the effective interest rate. |
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Term
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Definition
| Amount needed today to achieve some known future value. |
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Term
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Definition
| Series of equal payments made at regular intervals. |
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Term
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Definition
| Financial instrument that allows a firm to borrow money. |
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Term
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Definition
| Bonds which mature on several dates. |
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Term
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Definition
| A bond that matures on a single date. |
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Term
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Definition
| May be exchanged for a specified amount of common stock at the option of the bondholder. |
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Term
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Definition
| Not secured by any assets. |
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Term
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Definition
| May be purchased at the option of the issuing corporation within a specified period at a specified price. |
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Term
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Definition
| The amount by which the face value of a bond payable exceeds the issue price. When coupon rate is less than the market interest rate. |
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Term
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Definition
| The amount by which the issue price of a bond payable exceeds face value. Occurs when coupon rate is higher than market interest rate. |
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Term
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Definition
| Rate that investors are willing to accept on a bond. |
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Term
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Definition
| Interest rate specified on the bond. |
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