Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
27 Cards in this Set
- Front
- Back
|
Retained Earnings |
An amount earned by a corporation and not yet distributed to stockholders |
|
|
Dividends |
Earnings distributed to stockholders |
|
|
Board of Directors |
A group of persons elected by the stockholders to manage a corporation |
|
|
Declaring a Dividend |
Action by a board of directors to distribute corporate earnings to stockholders |
|
|
Merchandise Inventory |
The amount of goods on hand for sale to customers |
|
|
Uncollectible Accounts |
Accounts receivable that cannot be collected |
|
|
Allowance Method for Recording Losses from Uncollectible Accounts
|
Crediting the estimated value of uncollectible accounts to a contra account |
|
|
Book Value |
The difference between an asset's account balance and its related contra account balance |
|
|
Book Value of Accounts Receivable |
The difference between the balance of Accounts Receivable and its contra account, Allowance for Uncollectible Accounts |
|
|
Current Assets |
Cash and other assets expected to be exchanged for cash or consumed within one year Cash, Accounts Receivable, Prepaid Insurance, and Supplies |
|
|
Plant Assets |
Assets that will be used for a number of years in the operation of a business Equipment, Buildings, and Land |
|
|
Depreciation Expense |
The portion of a plant asset’s cost that is transferred to an expense account in each fiscal period during a plant asset’s useful life
|
|
|
Estimated Salvage Value |
The amount an owner expects to receive when a plant asset is removed from use |
|
|
Straight-line Method of Depreciation |
Charging an equal amount of depreciation expense for a plant asset in each year of useful life |
|
|
Accumulated Depreciation |
The total amount of depreciation expense that has been recorded since the purchase of a plant asset |
|
|
Book Value of a Plant Asset |
The original cost of a plant asset minus accumulated depreciation |
|
|
Net Sales |
Total sales less sales discount and sales returns and allowances |
|
|
Cost of Merchandise Sold |
The original price of all merchandise sold during a fiscal period |
|
|
Gross Profit on Sales |
The revenue remaining after cost of merchandise sold has been deducted |
|
|
Financial Ratio |
A comparison between two items of financial information |
|
|
Earnings per Share |
The amount of net income after federal income tax belonging to a single share of stock |
|
|
Price-Earnings Ratio |
The relationship between the market value per share and earnings per share of a stock |
|
|
Statement of Stockholder's Equity |
A financial statement that shows changes in a corporation's ownership for a fiscal period Capital Stock and Retained Earnings |
|
|
Par Value |
A value assigned to a share of stock and printed on the stock certificate |
|
|
Current Liabilities |
Liabilities due within a short time, usually within a year |
|
|
Long-term Liabilities |
Liabilities owed for more than a year |
|
|
Supporting Schedule |
A report prepared to give details about an item on a principal financial statement |
