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16 Cards in this Set
- Front
- Back
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Retained Earnings |
An amount earned by a corporation and not yet distributed to stockholders. |
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Dividends |
Earnings distributed to stockholders. |
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Board of directors |
A group of persons elected by the stockholders to manage a corporation. |
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Declaring a dividend |
Action by a board of directors to distribute corporate earnings to stockholders. |
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Merchandise Inventory |
The amount of goods on hand for sale to customers. |
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Uncollectible Account |
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 asset's account balance and its related contra account balance. |
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Book value of accounts receivable |
The difference between an asset's account balance and its related contra account balance of Accounts Receivable and its contra account, 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 assests |
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 asset's 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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Accumulate depreciation |
The total amount 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. |
