View
- Term
- Definition
- Both Sides
Study
- All (36)
Shortcut Show
Next
Prev
Flip
ACCT 209: EXAM 3
Long Term Asset |
Fixed asset, also known as a non-current asset or as property, plant, and equipment (PP&E) |
Natural Resource |
Natural resources occur naturally within environments that exist relatively undisturbed by mankind, in a natural form. |
Intangible Asset |
Intangible assets cannot be seen, touched or physically measured, which are created through time and/or effort and that are identifiable as a separate asset. |
Goodwill |
the fact that an ongoing business had some "prudent value" beyond its assets, such as the reputation the firm enjoyed with its clients. |
Depreciation Expense |
An asset has been used (depreciated) and is then recorded as an expense |
Accumulated Depreciation |
The amount of depreciation an asset collects over time. |
Book Value |
The value of an asset after depreciation as been subtracted. |
Capital Expenditure |
Expenses that improve, extend the life of, or make an asset more efficient. Amout added to the value of the asset |
Revenue Expenditure |
Regular maintenance and repairs that keep that asset in good working order. Recorded as an expense. |
Depletion Expense |
Depreciation expense for a natural resource. |
Amortization Expense |
Depreciation expense for intangible assets. |
Bad Debts Expense |
The amount of noncollectable accounts receiveable for a given period. |
Allowance for Bad Debts |
Money reserved to reduce accounts receiveable due to bad debts. |
Internal Control |
A process effected by an organization's structure designed to help the organization accomplish specific goals or objectives. |
Bank Reconciliation |
The process of comparing and matching figures from the accounting records against those shown on a bank statement. |
Simple Interest |
Interest calculated based on the balance of the principle. |
Principal |
Original amount of a bond or loan. |
Maturity Value |
Amount of bond at maturity including interest. |
Compound Interest |
Interest is added to the principal, so that from that moment on, the interest that has been added also itself earns interest. |
Present Value |
Present value is the value on a given date of a future payment or series of future payments |
Annuity |
Any terminating stream of fixed payments over a specified period of time. |
Bonds Payable |
Bonds Payable |
Serial Bond |
Serial bonds are financial bonds that mature in installments over a period of time. |
Term Bond |
Bonds that mature at one time. |
Debentures |
Unsecured debt backed only by the integrity of the borrower, not by collateral, and documented by an agreement called an indenture. One example is an unsecured bond. |
Convertible bonds |
Lender may exchange bond for company stock. |
Callable Bonds |
redeeming the bond at some point before the bond reaches the date of maturity. |
Bond Discount |
Market rate > stated rate |
Bond Premium |
Market rate < stated rate |
Market Interest Rate |
The current rate of interest that exists when a debt is incurred |
Stated Interest Rate |
amount of cash interest that bond will pay over life of bond issue. |
Straight Line Depreciation |
(Cost-Salvage Value) / (life of the asset) |
Units of Activity |
(Cost - Salvage Value) / (Life of asset in units) |
Double Declining Depreciation |
(2/Life of asset) * Book value |
Present Value |
(Future value) / (1 + interest rate)^(number of periods of compounding) |
Definition |
Definition |