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Test 3
Chapter 8
21
Accounting
Undergraduate 2
04/09/2012

Additional Accounting Flashcards

 


 

Cards

Term
Social Security(FICA) taxes
Definition
Federal Insurance Contributions Act taxes imposed on the employee and the employer; used mainly to provide.
Term
Bonus 
Definition
Additional compensation, beyond the regular compensation, paid to employees if certain objectives are achieved.
Term
Employee stock options
Definition
Rights given to employees to purchase shares of stock of a company at a predetermined price.
Term
Postemployment Benefits
Definition
Benefits paid to employees who have been laid off or terminated.
Term
Pension 
Definition
An agreement betweenn an employer and employees that provides for benefits upon retirement.
Term
Define Contribution Plan
Definition
A pension plan under which the employer contributes a defined amount to the pension fund; after retirement, employees receive the amount contributed plus whatever it has earned.
Term
Defined Benefit Plan
Definition
A pension plan under which the employer defines the amount that retiring employees will receive and contributes enough to the pension fund to pay that amount.
Term
Sales Tax Payable 
Definition
Money collected from customers for sales taxes that must be remiited to taxing authorities.
Term
Contingency 
Definition
Circumstances invloving potential losses or gains that will not be resolved until some future event occurs.
Term
Probably Contingent Liability 
Definition
The future event is likely to occur. Provide disclosure and make the appropriate journal entry.
Term
Reasonably Possible Contingent Liability
Definition
The event has a chance of occuring higher than remote but less than probable. Provide detailed disclosure.
Term
Remote Contingent Liability
Definition
The chance of the future event is very small. No disclosure or journal entry necessary.
Term
Environment Liabilities 
Definition

Obligations incurred because of damage done to the environment. 

Examples: clean up costs for oil spills, toxic waste dumps, or air pollution.

Term
Capitalize vs. Expense 
Definition
Capitalize things that are for a specific audience or for a long term asset. Expense things that are for a short period of time or things such as general ads.
Term
Research and Development-IASB
Definition
Requires research costs to be expensed and development costs to be capitalized.
Term
Research and Development-FASB
Definition
Requires that both research and development costs are expensed.
Term
Other revenues and expenses 
Definition

items incurred or earned from activities that are outside of, or peripheral to, the normal operations of a firm.

Examples: Dividend Revenue, Gain/Loss on sale of Land, Interest Expense.

Term
Extraordinary Items
Definition
Nonoperating gains and losses that are unusual in nature, infrequent in occurance, and material in amount. Ex.( floods, fires, and earthquakes)
Term
Earnings per Share
Definition
the amount of net income(earnings) related to each share of stock: computed by dividing net income by the number of shares of stock outstanding during the period.
Term
Basic Earnings per share
Definition
An earnings per share figure that divides net income by the number of shares of stock outstanding.
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