Chaper 9 -- Accounting

Front 1

Liabilities

Back 1

Probable debts or obligations of the entity that result from past transactions. This will be paid with assets or services.

Front 2

Current cash equivalent

Back 2

The amount creditors would accept to settle the liability immediately.

Front 3

Current liabilities

Back 3

Short term obligation that will be paid within the current operating cycle of business or within a year of the balance sheet.

Have a direct relationship to the operating activities of a business.

Front 4

Liquidity

Back 4

A company has the ability to meet its current obligations.

Front 5

Trade Accounts Payable

Back 5

Basically Accounts Payable.

The goods and services purchased from other companies on credit.

Front 6

Accrued Liabilities

Back 6

Expenses that have been incurred but have not been paid at the end of the accounting period.

Ex. property taxes, electricity, salaries

Front 7

Recording Accrued Vacation Compensation

Back 7

Compensation Expense (E+,SE-)[D}

Accrued Vacation Liability (L+)[C]

Front 8

Recording Vacation, when actually taken

Back 8

Accrued Vacation Liability (L-)[D]

Cash (A-)[C]

Front 9

Payroll Taxes (Records Amounts Paid to Employees)

Back 9

Compensation Expense (E+,SE-)[D]

Liability for income taxes withheld(L+)[C]
FICA Payable(L+)[C]
Cash(A-)[C]

Front 10

Payroll Taxes (FICA Taxes that employees must pay)

Back 10

Compensation Expense (E+,SE-)[D]

FICA Payable (L+)[C]

Front 11

Contingent Liabilities

Back 11

Which are potential liabilities that are created as a result of a past event.

Front 12

Probable and Reasonably Possible

Back 12

Probable (Record as liability)

Reasonably possible (Disclose in a note)

Remote (Nothing to be noted)

Front 13

Working Capital

Back 13

Dollar difference between current assets and current liabilities.

It has an impact on health and profitability of a company.

Front 14

Current Ratio

Back 14

Current Ratio = Current Assets/Current Liabilities

Resources company possess to pay its current liabilities.

Front 15

Long Term Liability

Back 15

Obligations that are classified as current liabilities

Front 16

Once the lease is signed

Back 16

Leased Equipment (A+)[D]

Lease Payable (L+)[C]

Front 17

Present Value (PV).;

Back 17

Based on the time value of money. Money received today is worth more then money to be received one year from today.

Front 18

Present Value Formula

Back 18

(1)/(1+i)n x Amount

Front 19

Present Value using Tables

Back 19

(amount in the future) x (table value)

Front 20

Yersinia spp cause infection in ____.
A. proximal small intestine
B. distal small intestine
C. colon

Back 20

B
(ileum/ colon).

Front 21

Annuity

Back 21

(Amount to be paid every month) (number from table)

Front 22

For Annunity

Back 22

Record the amount calculated by using the table and amount to be paid every month.

Note Payable (L-) [D]
Interest Expense (E+,SE-)[D]

Cash (A-)[C]

To calculate interest, substract all the note paybles x interest