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Study sets matching "financial chapter 9"

43 terms
Personal Financial Literacy - Chapter 9
Credit
Credit Bureau
Credit Report
Credit Score
Money that a lender makes available to a borrower with the un…
Organizations that collect credit information about individua…
Summarizes an individual's existing and past credit history,…
A numeric score that uses your credit history to assess your…
Credit
Money that a lender makes available to a borrower with the un…
Credit Bureau
Organizations that collect credit information about individua…
26 terms
Financial Accounting Chapter 9
Amortization of Intangible Assets
Book (or Carrying) Value
Capitalize
Copyright
The systematic and rational allocation of the cost of an inta…
The amount at which an asset or liability is reported after d…
To record a cost as an asset rather than an expense.
A form of protection provided to the original authors of lite…
Amortization of Intangible Assets
The systematic and rational allocation of the cost of an inta…
Book (or Carrying) Value
The amount at which an asset or liability is reported after d…
33 terms
Financial Accounting Chapter 9 EAS
Liabilities
Current Liabilities
Liabilities are recorded at ...
Liquidity
Probable debts or obligations of the entity that result from…
Short-term obligations that will be paid in cash (or other cu…
... their current cash equivalents
Ability to pay current obligations.
Liabilities
Probable debts or obligations of the entity that result from…
Current Liabilities
Short-term obligations that will be paid in cash (or other cu…
32 terms
Financial Accounting Chapter 9
Long-Lived Assets
Tangible Assets
Intangible Assets
Land Improvements
resources owned by a business that enable it to produce the g…
long lived assets that have physical substance, which simply…
long-liveed assets that have special rights but no physical s…
include sidewalks, pavement, landscaping, fencing, lighting,…
Long-Lived Assets
resources owned by a business that enable it to produce the g…
Tangible Assets
long lived assets that have physical substance, which simply…
86 terms
Financial Accounting Chapter 9
Plant Assets
Life history of plant assets
The historical cost principle requires…
Cost consists of
1. tangible resources such as land and depreciable property--…
1. acquisition... 2. subsequent expenditures... 3. cost recovery (d…
recorded at cost
all expenditures necessary to acquire the asset and make it r…
Plant Assets
1. tangible resources such as land and depreciable property--…
Life history of plant assets
1. acquisition... 2. subsequent expenditures... 3. cost recovery (d…
19 terms
Financial Planning Chapter 9 Vocabulary
A banking service wherein the customer…
A check that cannot be covered by the…
Writing a check on insufficient funds…
Another term for a survivorship account
checking account
overdraft
floating a check
joint
A banking service wherein the customer…
checking account
A check that cannot be covered by the…
overdraft
35 terms
Financial Literacy Chapter 9
Alternative Dispute Resolution
Bankruptcy
Bankruptcy Fraud
Chapter 11 Bankruptcy
A method of settling a dispute using a neutral third party.
A legal procedure to relieve a person of excessive debt.
The abuse of bankruptcy laws in a way that favors the debtor…
Reorganization of debt as decided by the court so that a busi…
Alternative Dispute Resolution
A method of settling a dispute using a neutral third party.
Bankruptcy
A legal procedure to relieve a person of excessive debt.
31 terms
Financial Literacy: Chapter 9 - Vocab
Alternative Dispute Resolution (ADR)
Bbankruptcy
Bankruptcy Fraud
Chapter 11 Bankruptcy
A method of settling a dispute using a neutral third party
A legal procedure to relieve a person of excessive debt
The abuse of bankruptcy laws in a way that favors the debtor…
reorganization of debt as decided by the court so that a busi…
Alternative Dispute Resolution (ADR)
A method of settling a dispute using a neutral third party
Bbankruptcy
A legal procedure to relieve a person of excessive debt
28 terms
Financial Peace - Chapter 9
insurance
beneficiary
claim
coverage
transfers the financial risk of major catastrophes thereby pr…
recipient of assets passed on from the death of a friend or r…
paperwork filed with an insurance company in order to get the…
applies to the amount of protection you have through an insur…
insurance
transfers the financial risk of major catastrophes thereby pr…
beneficiary
recipient of assets passed on from the death of a friend or r…
35 terms
Financial Accounting Chapter 9
Amortization of Intangible Assets
Book (or Carrying) Value
Capitalize
Copyright
The systematic and rational allocation of the cost of an inta…
The amount at which an asset or liability is reported after d…
To record a cost as an asset rather than an expense. Page 384
A form of protection provided to the original authors of lite…
Amortization of Intangible Assets
The systematic and rational allocation of the cost of an inta…
Book (or Carrying) Value
The amount at which an asset or liability is reported after d…
21 terms
Banking and Financial Systems Chapter 9
ABA routing number
Automated Clearing House (ACH)
Automated Teller Machine (ATM)
Automatic Payment
a nine-digit number assigned by the American Bankers Associat…
Electronic network for financial transactions that processes…
A computerized machine that provides a means of self-service…
Preauthorized electronic funds sent from a customer's account…
ABA routing number
a nine-digit number assigned by the American Bankers Associat…
Automated Clearing House (ACH)
Electronic network for financial transactions that processes…
Financial Management Chapter 9
American Option:
Bermudan Option
European Option
S_t
An option which may be exercised at any time during its life.
An option which must be exercised only at specific times duri…
An option which may only be exercised at the date of expirati…
Asset price at the contract expiration
American Option:
An option which may be exercised at any time during its life.
Bermudan Option
An option which must be exercised only at specific times duri…
32 terms
Chapter 9: Fundamental Financial Accounting Concepts
Amortizing
classified balance sheets
contingent liability
contra liability account
Systematically allocating the cost of intangible assets to ex…
Balance sheet that distinguishes between current and noncurre…
Obligations with amounts due that depend on events that will…
Account used to reduce the reported value of the liability to…
Amortizing
Systematically allocating the cost of intangible assets to ex…
classified balance sheets
Balance sheet that distinguishes between current and noncurre…
21 terms
Financial Accounting Chapter 9
Long Term Debt: Mortgage Note Payable
Bonds Payable
Face Value
Term Bonds
...
...
amount owed at maturity
Bond issue where all bonds mature on same date
Long Term Debt: Mortgage Note Payable
...
Bonds Payable
...
34 terms
Financial Accounting Chapter 9
Receivable
Accounts Receivable
Notes Receivable
Maturity Date
Occurs when a business sells goods or services to another par…
Represent the right to receive cash in the future from custom…
Usually have longer terms than accounts receivable. A fixed a…
Is the date on which the notes receivable is due.
Receivable
Occurs when a business sells goods or services to another par…
Accounts Receivable
Represent the right to receive cash in the future from custom…
25 terms
Financial Accounting Chapter 9
contingent liability
current portion of long-term debt
warranty
mortgage
a potential liability that depends on the outcome of a future…
the principal portion of a long-term liability that is payabl…
a guarantee that a product or service is free from defect
a long-term note payable that is secured by real estate
contingent liability
a potential liability that depends on the outcome of a future…
current portion of long-term debt
the principal portion of a long-term liability that is payabl…
11 terms
Financial Accounting Chapter 9
average-cost method
cost of goods available for sale
cost of goods purchased
cost of goods sold
inventory costing method that assumes that the goods availabl…
the sum of the beginning merchandise inventory plus cost of g…
the sum of net purchases plus freight-in
the total cost of merchandise sold during a period , determin…
average-cost method
inventory costing method that assumes that the goods availabl…
cost of goods available for sale
the sum of the beginning merchandise inventory plus cost of g…
9 terms
Financial Accounting: Chapter 9
plant asset
depreciation
cost principle
land improvement
long-lived, tangible asset such as land, buildings, and equip…
the process by which businesses spread the allocation of a pl…
a principle that states that acquired assets and services sho…
a depreciable improvement to land, such as fencing, sprinkler…
plant asset
long-lived, tangible asset such as land, buildings, and equip…
depreciation
the process by which businesses spread the allocation of a pl…
26 terms
financial literacy chapter 9
investing
risk
return
diversification
Saving in a way that earns income
the chance that an investment will decrease in value
income earned on an investment
distributing funds among a variety of investments to minimize…
investing
Saving in a way that earns income
risk
the chance that an investment will decrease in value
18 terms
Chapter 9 - Libby, Libby & Short - Financial Accounting
Which of the following is not a curren…
Which of the following is incorrect?…
Which of the following is the result o…
Which of the following transactions wi…
Current liabilities are those that will mature or be due with…
The first statement is correct because current liabilities wi…
When cash is received but goods or services are not provided…
The accounts payable ratio is computed by dividing cost of go…
Which of the following is not a curren…
Current liabilities are those that will mature or be due with…
Which of the following is incorrect?…
The first statement is correct because current liabilities wi…
26 terms
Financial Accounting Chapter 9
Accelerated-Depreciation Method
Additions and Improvements
Amortization
Asset Turnover
Depreciation method that produces higher depreciation expense…
Costs incurred to increase the operating efficiency, producti…
The allocation of the cost of an intangible asset to expense…
A measure of how efficiently a company uses its assets to gen…
Accelerated-Depreciation Method
Depreciation method that produces higher depreciation expense…
Additions and Improvements
Costs incurred to increase the operating efficiency, producti…
42 terms
Financial Accounting Chapter 9
Working Capital
Current Ratio
Liquidity
Operating Assets
The difference between a firm's current assets and its curren…
Also called working capital ratio... Current assets/current liab…
Refers to a firms ability to meet short term obligations as t…
Assets not involved in financing
Working Capital
The difference between a firm's current assets and its curren…
Current Ratio
Also called working capital ratio... Current assets/current liab…
22 terms
Financial Accounting Chapter 9
Accrued Liabilities
Annuity
Capital Lease
Contingent Liability
Expenses that have been incurred but have not been paid at th…
Series of periodic cash receipts or payments that are equal i…
...
A potential liability that has arisen as the result of a past…
Accrued Liabilities
Expenses that have been incurred but have not been paid at th…
Annuity
Series of periodic cash receipts or payments that are equal i…
15 terms
Financial Accounting Chapter 9
Bond
Secured Bond
Unsecured Bond
Junk Bonds
A type of note that requires the issuing entity to pay face v…
Has some collateral. EX: Mortgage bonds are secured by real e…
Most bonds are unsecured. There is no collateral. The lender…
These are unsecured bonds where the risk of the borrower fail…
Bond
A type of note that requires the issuing entity to pay face v…
Secured Bond
Has some collateral. EX: Mortgage bonds are secured by real e…
35 terms
Chapter 9: Business Financial Records
Financial Records
Record-Keeping System
Accounting
Data Processing
Organized sumaries of a business's financial information and…
A manual or automated process for collecting, organizing, and…
The process of recording, analyzing, and interpreting financi…
The set of activities invollved in obtaining, recording, orga…
Financial Records
Organized sumaries of a business's financial information and…
Record-Keeping System
A manual or automated process for collecting, organizing, and…
21 terms
Financial Accounting Chapter 9
Land
Fixed assets
Natural resource costs
Intangible assets
includes the cost of real estate used in the operations of a…
include buildings, machinery and equipment, and are often loc…
include the costs often associated with acquiring the rights…
characterized by rights, privileges, and benefits of possessi…
Land
includes the cost of real estate used in the operations of a…
Fixed assets
include buildings, machinery and equipment, and are often loc…
8 terms
Introduction to Financial Accounting Chapter 9
What are current liabilities?
What are accounts payable?
What are short-term notes payable?
What is the current portion of long te…
Obligations that are due within one year
Amounts owed to suppliers for goods or services purchased on…
Formal written promises to pay cash to a creditor within one…
The next twelve months of monthly installments related to a l…
What are current liabilities?
Obligations that are due within one year
What are accounts payable?
Amounts owed to suppliers for goods or services purchased on…
25 terms
Financial Accounting Chapter 9
Accelerated-depreciation method
Additions and improvements
Amortization
Asset turnover
Depreciation method that produces higher depreciation expense…
Cost incurred to increase the operating efficiency, productiv…
The allocation of the cost of an intangible asset to expense…
A measure of how efficiently a company uses its assets to gen…
Accelerated-depreciation method
Depreciation method that produces higher depreciation expense…
Additions and improvements
Cost incurred to increase the operating efficiency, productiv…
20 terms
Financial Management Chapter 9
checking account
demand deposit
overdraft (or NSF)
payee
a banking service in which a customer deposits money and writ…
an account on which the depositor can demand money at any tim…
occurs when a depositor writes a check on an account that is…
the person to whom the check is made payable to
checking account
a banking service in which a customer deposits money and writ…
demand deposit
an account on which the depositor can demand money at any tim…
39 terms
Chapter 9 Financial Literacy
Alternative Dispute Resolution
Bankruptcy
Bankruptcy Fraud
Chapter 7 Bankruptcy
a method of settling a dispute using a neutral third party
a legal procedure to relieve a person of excessive debt
abusing bankruptcy laws in a way that favors the debtor
a type of bankruptcy in which an individual forfeits assets i…
Alternative Dispute Resolution
a method of settling a dispute using a neutral third party
Bankruptcy
a legal procedure to relieve a person of excessive debt
10 terms
Financial Planning Chapter 9 Multiple Choice
A financial institution that offers al…
A checking account offered by a credit…
A checking account with which you pay…
A disadvantage of an interest-bearing…
c
b
d
b
A financial institution that offers al…
c
A checking account offered by a credit…
b
21 terms
Chapter 9 Financial Literacy Review
bankruptcy
Chapter 13 Wage Earner Plan
Chapter 7 Liquidation
credit card fraud
Provides relief for a person who cannot pay debts
A type of bankruptcy in which the debtor pays part of or all…
A type of bankruptcy in which the debtor gives up property, a…
A type of crime by which a criminal intentionally uses anothe…
bankruptcy
Provides relief for a person who cannot pay debts
Chapter 13 Wage Earner Plan
A type of bankruptcy in which the debtor pays part of or all…
27 terms
Financial Accounting Chapter 9
Accelerated-Depreciation Method
Additions and improvements
Amortization
Asset Turnover
A depreciation method that produces higher depreciation expen…
Costs incurred to increase the operating efficiency , product…
The process of allocating to expense the cost of an intangibl…
Indicates how efficiently a company uses its assets to genera…
Accelerated-Depreciation Method
A depreciation method that produces higher depreciation expen…
Additions and improvements
Costs incurred to increase the operating efficiency , product…
16 terms
Financial Accounting Chapter 9
liabilities
current liabilities
liquidity
accrued liabilities
probable debts or obligations that result from past transacti…
short-term obligations that will be paid within the current o…
ability to pay current obligations
expenses that have been incurred but have not been paid at th…
liabilities
probable debts or obligations that result from past transacti…
current liabilities
short-term obligations that will be paid within the current o…
10 terms
chapter 9 financial management
financial institutions usually do not…
most financial institutions offer onli…
electronic funds transfer involves the…
it is important to reconcile your chec…
f
t
t
t
financial institutions usually do not…
f
most financial institutions offer onli…
t
42 terms
Chapter 9 financial
Premium
Basic insurance
Major medical insurance
Blue Cross
Monthly payment
Covers a specific dollar amount
Covers some of the cost of catastrophic illness or injury
Covers... Hospitalization ... Radiology ... Basic coverage
Premium
Monthly payment
Basic insurance
Covers a specific dollar amount
19 terms
financial accounting: chapter 9
liabilities
current liabilities
liquidity
accrued liabilities
probable debts or obligations that result from past transacti…
short-term obligations that will be paid within the current o…
the ability to pay current obligations
expenses that have been incurred but have not been paid at th…
liabilities
probable debts or obligations that result from past transacti…
current liabilities
short-term obligations that will be paid within the current o…
42 terms
Chapter 9 Financial Algebra Terms
Retirement
Semi-Retired
Pre-Tax Dollars
After-Tax Investment
A specific point in someone's life when he or she stops worki…
They continue to work at a full-time or part-time job out of…
What some retirement accounts are made of.
What other types of accounts are made of.
Retirement
A specific point in someone's life when he or she stops worki…
Semi-Retired
They continue to work at a full-time or part-time job out of…
20 terms
Financial Planning Chapter 9 True/False
Banks usually charge fees for processi…
It is a good practice to postdate chec…
The payee is the person authorized to…
You can have 24-hour access to your ac…
True
False
False
True
Banks usually charge fees for processi…
True
It is a good practice to postdate chec…
False
34 terms
Financial Mngmt Chapter 9
balloon/bullet loan
bond basics
bond
standard bond
-non amortizing loan and paid off at maturity
-like loan except one issuer/borrower and many bondholders/le…
-debt security, represents financial claim by which the issue…
series of coupon payments and principal/redemption value is r…
balloon/bullet loan
-non amortizing loan and paid off at maturity
bond basics
-like loan except one issuer/borrower and many bondholders/le…
10 terms
Chapter 9 Credit Financial Literacy
Credit
Interest
Noninstallment Credit
Installment Credit
Money that lenders provide to borrowers that needs to be repa…
Fees charged by a lender on borrowed money.
Short term credit. Typically used by businesses.
Credit used for specific usually big ticket purchases but the…
Credit
Money that lenders provide to borrowers that needs to be repa…
Interest
Fees charged by a lender on borrowed money.
26 terms
Chapter 9 Financial Lit Vocabulary
Disputing a Check
Documentation
Dispute Letter
Credit Card Fraud
the process of informing a credit company of an error on your…
records that support your claim
a letter written to inform a credit card company of an incorr…
intentionally using someone 's credit account to steal money…
Disputing a Check
the process of informing a credit company of an error on your…
Documentation
records that support your claim
32 terms
Financial Planning Chapter 9 review
Risk pooling
Premium
Actuaries
Face amount (face of policy)
through insurance, sharing financial consequences of risk
life insurance payment
Statisticians who specializes in determining probablility of…
amount of insurance provided at death
Risk pooling
through insurance, sharing financial consequences of risk
Premium
life insurance payment
26 terms
Financial Accounting Chapter 9 Terms
accelerated-depreciation method
additions and improvements
amoritization
asset turnover
depreciation method that produces higher depreciation expense…
costs incurred to increase the operating efficiency, producti…
the allocation of the cost of an intangible asset to expense…
A measure of how effectively a company is uses its assets to…
accelerated-depreciation method
depreciation method that produces higher depreciation expense…
additions and improvements
costs incurred to increase the operating efficiency, producti…
11 terms
Chapter 9 financial planning vocab
group health insurance
indemnity (fee-for-service) plan
managed care plan
health maintenance organization (HMO)
Health insurance consisting of contracts written between a gr…
health insurance plan in which the health care provider is se…
a health care plan in which subscribers/users contract with t…
an organization of hospitals, physicians, and other health ca…
group health insurance
Health insurance consisting of contracts written between a gr…
indemnity (fee-for-service) plan
health insurance plan in which the health care provider is se…
11 terms
Financial Accounting Chapter 9
Book (Or Carrying) Value
Capitalize
Declining-Balance Depreciation Method
Depreciable Cost
the difference between the Property and Equipment cost and ac…
Act of turning costs into assets by recording them as assets…
when the asset is more efficient (generates more revenues) in…
difference between cost and residual value
Book (Or Carrying) Value
the difference between the Property and Equipment cost and ac…
Capitalize
Act of turning costs into assets by recording them as assets…
9 terms
Financial Accounting Chapter 9 Vocabulary
Current Liabilities
Long-term liabilities
Known Liabilities
Short-term note payable
Obligations due to be paid or settles within one year or the…
Obligations not due to be paid within one year or the operati…
Obligations of a company with little uncertainty; set by agre…
Current obligation in the form of a written promissory note.
Current Liabilities
Obligations due to be paid or settles within one year or the…
Long-term liabilities
Obligations not due to be paid within one year or the operati…
Financial Accounting Chapter 9 Terms
Capital Expenditures
Capitalize
Depletion
Depreciation
Costs incurred to acquire a long-lived asset. Expenditure tha…
A verb with two different meanings in accounting: ... 1. Debit a…
Allocating the cost of a natural resource to the units remove…
Systematic allocation of the cost of an asset to expense over…
Capital Expenditures
Costs incurred to acquire a long-lived asset. Expenditure tha…
Capitalize
A verb with two different meanings in accounting: ... 1. Debit a…
7 terms
Chapter 9 Financial Accounting
Depreciation
Depreciation Cost
Goodwill
Capitalize
Process of allocating the cost of buildings and equipment ove…
The portion of the asset's cost that will be used up during i…
For accounting purposes, the excess of the purchase price of…
To record a cost as an asset rather than an expense
Depreciation
Process of allocating the cost of buildings and equipment ove…
Depreciation Cost
The portion of the asset's cost that will be used up during i…
24 terms
financial accounting chapter 9
bonds
callable bonds
convertible bonds
Junk bonds
issued for a period of more than one year with the purpose of…
gives the borrower the right to pay off their bonds prior to…
allows bondholder to convert bond into other securities
unsecured bonds that are relatively risky
bonds
issued for a period of more than one year with the purpose of…
callable bonds
gives the borrower the right to pay off their bonds prior to…
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