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;
22 Cards in this Set
- Front
- Back
Liabilities
|
Probable debts or obligations of the entity that result from past transactions. This will be paid with assets or services.
|
|
Current cash equivalent
|
The amount creditors would accept to settle the liability immediately.
|
|
Current liabilities
|
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. |
|
Liquidity
|
A company has the ability to meet its current obligations.
|
|
Trade Accounts Payable
|
Basically Accounts Payable.
The goods and services purchased from other companies on credit. |
|
Accrued Liabilities
|
Expenses that have been incurred but have not been paid at the end of the accounting period.
Ex. property taxes, electricity, salaries |
|
Recording Accrued Vacation Compensation
|
Compensation Expense (E+,SE-)[D}
Accrued Vacation Liability (L+)[C] |
|
Recording Vacation, when actually taken
|
Accrued Vacation Liability (L-)[D]
Cash (A-)[C] |
|
Payroll Taxes (Records Amounts Paid to Employees)
|
Compensation Expense (E+,SE-)[D]
Liability for income taxes withheld(L+)[C] FICA Payable(L+)[C] Cash(A-)[C] |
|
Payroll Taxes (FICA Taxes that employees must pay)
|
Compensation Expense (E+,SE-)[D]
FICA Payable (L+)[C] |
|
Contingent Liabilities
|
Which are potential liabilities that are created as a result of a past event.
|
|
Probable and Reasonably Possible
|
Probable (Record as liability)
Reasonably possible (Disclose in a note) Remote (Nothing to be noted) |
|
Working Capital
|
Dollar difference between current assets and current liabilities.
It has an impact on health and profitability of a company. |
|
Current Ratio
|
Current Ratio = Current Assets/Current Liabilities
Resources company possess to pay its current liabilities. |
|
Long Term Liability
|
Obligations that are classified as current liabilities
|
|
Once the lease is signed
|
Leased Equipment (A+)[D]
Lease Payable (L+)[C] |
|
Present Value (PV).;
|
Based on the time value of money. Money received today is worth more then money to be received one year from today.
|
|
Present Value Formula
|
(1)/(1+i)n x Amount
|
|
Present Value using Tables
|
(amount in the future) x (table value)
|
|
Yersinia spp cause infection in ____.
A. proximal small intestine B. distal small intestine C. colon |
B
(ileum/ colon). |
|
Annuity
|
(Amount to be paid every month) (number from table)
|
|
For Annunity
|
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 |