Ch4 Stice Key Terms

Accounts Payable
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Terms in this set (41)
Accounts Payable
the amount of money owed, or payable, to a business's creditors
Accounts Receivable
a creditor's accounts of money owed to him
Accrued Liabilities
expenses already incurred but not yet paid
Accumulated Depreciation
wear and tear of items since they were originally purchased
Accumulated other Comprehensive Income
changes in equity due to market movements
Additional Paid In Capital
the amount a company receives from selling stock to investors above par value of shares issued
Asset Mix
The percentage of each asset relative to total assets.
Balance Sheet
a financial statement that reports assets, liabilities, and owner's equity on a specific date
Capital Lease Obligations
lease of property, plant, and equipment that is financially structured the same as debt financed purchases.
ex) 5 year and purchase for $1
Cash
Resources that consist of coins, currency, checks, money orders, and money on hand or on deposit in a bank or similar depository.
Common Stockthe most basic form of ownership, including voting rights on major issues, in a companyCurrent Assetscash, accounts receivable, and inventoryCurrent Liabilitiesthose obligations expected to be paid within one year. Most common is accts. payableCurrent Portion of Long Term DebtThat portion of long-term debt that must be paid in the current accounting periodDeferred Income Tax Liabilityexpected to be paid in future but b/c of tax laws is not due in current accounting periodDerivativefinancial instrument that derives its value from the movement of a price, an exchange rate, or an interest rate associated with another itemDisclosureconvey details in a narrative note but not in the financial statement itselfEquityThe difference between assets and liabilityExecutory Contractan exchange of promises about the futureFinancing Mixpercentage of total financing (liabilities plus equity) in each individual categoryIntangible Assetslong-term assets (e.g., patents, trademarks, copyrights) that have no real physical form but do have valueInventorygoods held for sale in the normal course of businessInvestment Securitiespublicly traded stocks and bondsLiabilitieswhat the business owes to others (debts)Long-Term DebtLoans and financial obligations lasting over one year.Long-Term Investmentsto earn income. and exercise influence over companies in which they invest. ex) Coke - Coke BottlerMinority Interestwhen a company has subsidiaries that are not 100% owned by the corporationOther AssetsThis section should include only unusual items sufficiently different from assets in the other categories.Par Valuemarket value of shares of stock at issuancePreferred Stockstock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rightsPrepaid Expensespayments in advance for business expensesProperty-Plant-Equipmentassets with relatively long useful lives that companies use in operating the business and are not intended for resaleRecognitionboil down all the estimates and judgements into one number and report that one number in formal financial statementsRetained Earningscumulative amount of a corporation's profits that have been reinvested on behalf of the stockholdersShort-Term Loans Payableinterest bearing loans that are expected to be paid back within one yearStockholders' Equitythe difference between ASSETS and LIABILITIES. the residual value that would remain if all liabilities were satisfiedTransaction Analysisprocess of determining how an economic event impacts the financial statementsTreasury Stockwhen a company buys back its own sharesUnearned RevenueLiability created when customers pay in advance for products or services; earned when the products or services are later delivered. ex) service contractValuationwhat dollar amount to assign to an itemWorking Capitalcurrent assets minus current liabilities