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16 Cards in this Set
- Front
- Back
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Retained Earnings |
An amount earned by a corporation an not yet distributed to stockholders |
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Dividends |
Earnings distributed to stockholders |
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Board of Directions |
A group of people elected by the stockholders to manage a corporation |
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Declaring a Dividend |
Action by a board of directions corporate earnings to stockholders |
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Merchandise Inventory |
The amount of goods on hand for sale to customer |
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Uncollectible accounts |
Accounts receivable that cannot be collected |
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Allowance method of recording losses from uncollectible accounts |
Crediting the estimated value of uncollectible accounts to a contra account |
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Book Value |
The difference between an assets account balance and its related contra account balance |
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Book value of accounts receivable |
Allowance for uncollectible accounts |
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Current assets |
Cash and other assets expected to be exchanged for cash or consumed within a year. |
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Plant Assets |
Assets that will be used for a number of years in the operation of a business |
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Depreciation expense |
The portion of a plant asset's cost that is transferred to an expense account in each fiscal period during a plant assets useful life |
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Estimated salvage value |
The amount an owner expects to receive when a plant asset is removed from use |
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Straight line method of depreciation |
Charging an equal amount of depreciation expense for a plant asset in each year of useful life
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Accumulated depreciation |
The total amount of depreciation expense that has been recorded since the purchase of a plant asset |
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Book value of a plant asset |
The original cost of a plant asset minus accumulated depreciation |
