Study sets matching "financial chapter 9"

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Study sets matching "financial chapter 9"

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…
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…
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…
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…
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…
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
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
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.
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
...
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…
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…
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…
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…
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…
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…
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.
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…
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…
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…
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…
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…
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…
Financial Terms, Chapter 9
opportunity cost
net working capital
depreciation tax shield
straight-line depreciation
benefit or cash flow forgone as a result of an action
current assets minus current liabilities
reduction in taxes attributable to depreciation
constant depreciation for each year of the asset's accounting…
opportunity cost
benefit or cash flow forgone as a result of an action
net working capital
current assets minus current liabilities
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…
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…
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…
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…
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
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
26 terms
Financial Accounting Chapter 9 Terms
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 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…
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
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…
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…
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…
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…
14 terms
Chapter 9 - Financial Statements
Income Statement section of the work s…
income statement
report form
financial statements
The source of information for completing the income statement…
The financial statement that reports the net income or net lo…
The classifications of balance sheet accounts are shown one u…
Reports prepared to summarize the changes resulting from busi…
Income Statement section of the work s…
The source of information for completing the income statement…
income statement
The financial statement that reports the net income or net lo…
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…
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
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
Financial Accounting Chapter 9
Liability
When a liability is first recorded how…
Why is interest not included in the re…
What are current liabilities?
probable debts or obligations of the entity that result from…
It is measured in terms of its current cash equivalent, which…
Interest that will be paid in the future is not included in t…
Short-term obligations that will be paid within the current o…
Liability
probable debts or obligations of the entity that result from…
When a liability is first recorded how…
It is measured in terms of its current cash equivalent, which…
Chapter 9 - Financial Statements
Book Value
Book Value per Share
Time Series Analysis
Cross-Sectional Analysis
Firm's total assets minus total liabilities; equity; net worth
Book value divided by # of shares outstanding
Analysis of a firm over a period of time
Analysis of several firms in the same industry at a point in…
Book Value
Firm's total assets minus total liabilities; equity; net worth
Book Value per Share
Book value divided by # of shares outstanding
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
financial accounting chapter 9
contingent liability
current liabilities
current position of long term debt
deferred income tax liability
obligation to make a future payment if and only if an uncerta…
obligations due to be paid or settles within one year or the…
portion of long term debt due within one year of the operatin…
corporation income taxes that are deferred until future years…
contingent liability
obligation to make a future payment if and only if an uncerta…
current liabilities
obligations due to be paid or settles within one year or the…
44 terms
Financial Lit- Chapter 9
Simple interest
Future value compound interest
Disputing charges
Credit card fraud
Principal x rate x time
Principal (1+r/n)^n*y
Informing credit card company of an error on a bill
Intentionally using someone's account to steal money and goods
Simple interest
Principal x rate x time
Future value compound interest
Principal (1+r/n)^n*y
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