Intermed Acct Ch 13

Front 1

Probable future sacrifices of Econ benef arising from present obligations of entity to transfer assets or provide services to another in future as result of past transaction

Back 1

Liabilities

Front 2

Liability has 3 characteristics:

Back 2

Present oblig w/settlemt by fut xfer or use of $, good or service

Unavoidable oblig

Transaction or event already occurred

Front 3

One of most important feature of liability

Back 3

Date of maturity on payable

Front 4

Oblig whose liquidation is reasonably expected to require use of existing current asset or creation of other current liabilities

Back 4

Current liabilities

Front 5

Period of time elapsing b/t acquisition of good/service involved in manuf process and final cash realization resulting from sales and subsequent collection

Back 5

Operating cycle

Front 6

Balances owed to others for goods, supplies or services purchased on open acct

Back 6

Accts payable (aka trade accts payable)

Front 7

Written promises to pay certain amt of $ on specified future date

Back 7

Notes payable (aka trade notes payable)

Front 8

Amt owed by Corp to s/holders as result of board authorization; liab is assumed at date of declaration

Back 8

Cash dividend payable

Front 9

Accumulated but undeclared div on cumul pref stock NOT recogn as obligation until board authorizes payment

Back 9

Preferred dividends in arrears

Front 10

Deposit received from customers and employees to guarantee future perform of contract or service or as guarantee to cover pmt of future oblig

Back 10

Returnable cash deposits

Front 11

Paymt received for future good or service fulfillment

Back 11

Unearned revenues

Front 12

Taxes levied on employee and employer to benefit certain individuals and families

Back 12

Old age, survivor, disability Insurance (OASDI), aka FICA

Front 13

Combo of FICA and federal Hospital Insurance Tax

Back 13

Social security tax

Front 14

Unemployment insurance for employers who 1) paid wages of $1,500 or more in calendar quarter and 2) employed at least one person for at least one day

Back 14

Fed Unemploymt Tax Act (FUTA)

Front 15

Paid absences from employment

Back 15

Compensated absences

Front 16

Exists when employer has oblig to make pmt to employee even after terminating employmt

Back 16

Vested rights

Front 17

Rights that employees can carry forward to future periods if not used in period in which they are earned

Back 17

Accumulated rights

Front 18

Extra pay by Companies due to profits reached, include as current liability on BS

Back 18

Bonus

Front 19

Portion of bonds, mortgage notes and other long-term debt that matures within next fiscal year

Back 19

Current maturities of long- term debt

Front 20

Existing condition, situation or set of circumstances involving uncertainty of possible gain or loss that will be resolved when future events occur or fail to

Back 20

Contingency

Front 21

Claims or rights to receive assets or reduction in liability whose existence is uncertain but may become valid

Back 21

Gain contingency

Front 22

Loss incurred as a uncertainty based on future events; depend on occurrence of future events to confirm the amt payable, payer, date payable or it’s existence

Back 22

Loss contingency (contingent liabilities)

Front 23

Future event is likely to occur

Back 23

Probable

Front 24

Chance of future event occurring is more than remote but less than likely

Back 24

Reasonably possible

Front 25

Chance of future event occurring is slight

Back 25

Remote

Front 26

Time period of underlying cause occurrence, probability of unfavorable outcome, and ability to make reasonable estimate of loss amt

Back 26

Taken into consideration when determining to record a litigation, claim or assessment liability

Front 27

Promise made by seller to buyer to make good on deficiency of quantity, quality or performance of product

Back 27

Warranty (product guarantee)

Front 28

Warranty that product meets agreed-on specs, sold at time of product purchase and included in sale

Back 28

Assurance-type warranty

Front 29

Warranty that provides additional service beyond assurance-type warranty, not included in sales price

Back 29

Service-type warranty

Front 30

Extra consideration to customers as part of revenue arrangement, maybe for volume discount or faithfulness

Back 30

Premium

Front 31

Company’s existing legal oblig assoc w/retirement of long-lived asset, when amt if liab can be estimated

Back 31

Asset retirement oblig (ARO)

Front 32

Risk assumption that a company assumes incurred exp or losses as they happen

Back 32

Self-insurance

Front 33

A company records a loss contingency and liab when loss is...

Back 33

Probable AND estimable

Front 34

Current assets/ current liabs

Back 34

Current ratio (aka working capital ratio)

Front 35

Cash, S/T inv, A/R (net) divided by Tot curr liabs

Back 35

Acid-test ratio (aka quick ratio)