Flashcards
LiabilitiesFlashCards
Cards in this deck (28)
- 1What is an accounts payable?amounts owed for inventories, goods or services acquired in the normal course of business
- 2What are notes payable and why is it different from accounts payable?Notes payable are written promises to pay money that is borrowed and includes interest which is also why it's different from accounts payable.
- 3What is depreciation?Depreciation is the allocation or distribution of costs over an assets useful life
- 4What is a Liability?A probable future payment of assets or services that a company is presently obligated to make as a result of past transactions or events.
- 5What is a Accrued Liability?A liability that has been incurred but has not yet been paid
- 6What are the costs of bringing a corporation into existence, including legal fees, promoter fees, and amounts paid to obtain a charter?Organization costs
- 7What is an unusual gain or loss?A gain or loss that is abnormal or otherwise unrelated to the company's ordinary activities and environment
- 8What is a no-par value stock?A class of stock that has not been assigned a par value by the corporate charter
- 9What is a corporation's distribution of its own stock to its stockholders without the receipt of any payment?Stock dividend
- 10What are the number of shares of stock that a corporation's charter allows it to sell?Authorized Stock
- 11The basic stock of a corporation that usually carries voting rights for controlling the corporation is...Common Stock
- 12What is a Preemptive Right?The right of common stockholders to maintain their proportionate interest in a corporation by having the first opportunity to buy additional proportionate shares of stock issued
- 13What is Minimum Legal Capital?The least amount that buyers of stock must contribute to the corporation or be subject to paying at a future date
- 14Preferred Stock that gives the issuing corporation the right to purchase or retire it at specified future prices and dates, is called..?Callable Preferred Stock
- 15What is Convertible Preferred Stock?Preferred stock giving the holder the option of exchanging it for common stock at a specified rate
- 16What do unearned revenues count as?Liabilities
- 17Yes or no: payroll taxes contingent liabilitiesYes
- 18True or False: A liability is a probable future payment of assets or services that a company is presently obligated to make as a result of past transactions or eventsTRUE
- 19Are all expected future payments liabilities?NO
- 20What are trade accounts payable?Amounts owed to suppliers for products or services purchased on credit
- 21What is the difference between the amount received from issuing a note payable and the amount repaid is referred to as..?Interest
- 22Stock Splits are?The creation of additional shares of stock with a reduction of the par value of the stock
- 23What is a partnership agreement?Specifies how much the owners will invest, what their salaries will be, and how profits will be shared
- 24What are the Book Values Per Share?Total Stockholders' Equity/# of shares of common stock outstanding?
- 25What are Stock Dividends?The issuance of additional shares of stock to existing stockholders
- 26What is Treasury Stock?Stock issued by the firm and then repurchased but not retired or when a corporation buys its own stock sometime after issuing it
- 27What is Par Value?An arbitrary amount that represents the legal capital of the firm
- 28Additional Paid-in CapitalThe amount received for the issuance of stock in excess -
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- Accounting Flashcards on LiabilitiesFlashCards, created by Mae Jean on 15/11/2016.
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- Mae Jean
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