24 terms

Chapter 14 Review - worksheets


Terms in this set (...)

Retained Earnings
An amount earned by a corporation and not yet distributed to stockholder. The title of the account used to record a corporations' earnings.
Earnings distributed to stockholders. A temporary account similar to owner's drawing.
Board of Directors
A gourp of people elected by the stockholders to manage a corporation.
Declaring a dividend
Action by a board of directors to distribute corporate earnings to stockholders.
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.
Contra Account
An account that reduces a related account
Contra account to purchases?
Purchases discounts and Purchases returns and allowances.
Contra account to sales
Sales Discounts and Sales returns and allowances
Contra account to Accounts Receivalbe
Allowance for uncollectible accounts
Contra account to Store Equipment
Accumulated Depreciation - Store Equipment
Book Value
The difference between an asset's account balance and its related contra account balance. ie: Accounts Receivable - Allowance for uncollectible accounts.
Current Assets
Cash and other assets expected to be exchanged for cash or consumed within a year.
Plant Assets
Assets that will be used for a number of years in the operaiton of a business.
Depreciation Expense
the portion of a plant assets' cost that is transferred to an expense account in each fiscal period suirng a plan asset's useful life.
Estimated Salvage Value
The amount an owner wxpects to receive with a plant asset is removed from use.
Original Cost - total depreciation divided by Useful life = ______________________________.
Estimated Salvage Value
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 accumulated since the purchase of a plant asset.
Bool Value of a Plant Asset
Original Cost - Accumulated Depreciation
Who can declare a dividend for the stockholders?
The board of directors
A Dividend in a/an _________________ to the business
The owner's capital account has been replaced with _____________ ________________ in a corporation
Retained Earnings
Which two accounts are affected when a dividend is declared?
Dividends and Dividends Payable