22 terms

Chapter 11-14


Terms in this set (...)

Subsidiary Ledger
A ledger that is summarized in a single general ledger account.
Accounts Payable Ledger
A subsidary ledger containing only accounts for vendors from whom merchandise or other items are purchased on account.
Accounts Receivable Ledger
A subsudiary ledger containing only accounts for charge customers.
Controlling Account
An account in a general ledger that summarizes all accounts in a subsidiary ledger.
Schedule of Accounts Payable
A listing of vendor accounts, account balances, and total amount due all vendors.
Schedule of Accounts Receivable
A listing of customer accounts, account balances, and total amount due from all customers.
Retained Earnings
An amount earned by a corporation and not yet distributed to stockholders.
Earnings distributed to stockholders.
Board of Directors
A group of persons 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 cannot be collected.
Allowance Method of Recording Losses from Uncollectible Accounts
Crediting the estimated value of uncollectible accounts to a 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 assets 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 Depreciation
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 accumulated depreciation.