16 terms

Accounting Chapter 14 vocab

Vocab chapter 14 for accounting

Terms in this set (...)

Retained Earnings
An amount earned by a corporation and not yet distributed to stockholders.
Earnings distributed to stockholders.
Board of Directors
A group 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.
Merchandise Inventory
The amount of goods on hand for sale to customers.
Uncollectible Accounts
Accounts receivable that can't be collected.
Allowance Method
Crediting the estimated value of uncollectible account to 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 a year.
Plant Assets
Assets that will be used for a number of years in the operation of a business.
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 Depreciatino
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 accumulate depreciations.