Recording Liabilities Other Terms Review Potpourri $100100$100100$100100 $200200$200200$200200...
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Recording Liabiliti es Other Terms Review Potpourr i $100 $100 $100 $200 $200 $200 $300 $300 $300 $400 $400 $400 $500 Bond Trans-x $400 $100 $200 $300 $500 Bond Terms $100 $200 $300 $400 $500 $500 $500
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Transcript of Recording Liabilities Other Terms Review Potpourri $100100$100100$100100 $200200$200200$200200...
Recording Liabilities
Other Terms
Review Potpourri
$100 $100 $100
$200 $200 $200
$300 $300 $300
$400 $400 $400
$500
Bond Trans-x
$400
$100
$200
$300
$500
Bond Terms
$100
$200
$300
$400
$500 $500 $500
Recording Liabilities - $100
The category of liabilities used to report expenses that have been incurred but not paid (or recorded) at the end of the accounting period.
What are Accrued Liabilities?
Back to Board
Recording Liabilities - $200
Short-term obligations that will be paid with current assets within the current operating cycle or one year, whichever is longer.
What are Current Liabilities?
Back to Board
Recording Liabilities - $300
Accounts affected when a retail company, using a perpetual inventory system, sells a microwave to a customer for cash.
What are Cash, Sales Revenue, Inventory, and Cost of Goods Sold? (Also, if sold in a jurisdiction that charges sales tax, what is Sales Taxes Payable)?
Back to Board
Recording Liabilities - $400
Accounts affected when an employee earns and is paid her net wages in cash.
What are Wages Expense, Cash, Withheld Income Taxes Payable, CPP Payable, EI Payable, and any miscellaneous payables such as United Way or pension plans?
Back to Board
Recording Liabilities - $500
The point at which a liability is recorded.
What is “at the point when the company is obligated to give up assets or services”? (See p. 429)
Back to Board
Bond Terms - $100
The payment made when a bond matures.
What is Face Value?
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Bond Terms - $200
The interest rate stated on the face of the bond, which is used to compute interest payments.
What is the Stated Interest Rate?
Back to Board
Bond Terms - $300
The amount of money the company receives when the bond is issued.
What is the Issue Price?
Back to Board
Bond Terms - $400
The rate of interest that lenders demand from a bond.
What is the Market Interest Rate?
Back to Board
Bond Terms - $500
When the issue price is greater than the face value the bond is issued at a ______. When the issue price is below the face value the bond is issued at a ______.
What are Premium and Discount?
Back to Board
Bond Trans-x - $100
Accounts affected when a $1,000 bond is issued at face value.
What are Cash (debited for $1,000) and Bonds Payable (credited for $1,000)?
Back to Board
Bond Trans-x - $200
Back to Board
The classification of the Discount on Bonds Payable account.
What is a Contra-Liability?
Bond Trans-x - $300
DAILY DOUBLE!!!
Bond Trans-x - $400
The accounts affected when a $1,000 bond is issued at 104.
What are Cash (debited for $1,040), Bonds Payable (credited for $1,000), and Premium on Bonds Payable (credited for $40)?
Back to Board
Bond Trans-x - $500
The accounts affected when a $1,000 bond, which was issued at face value, is retired at 109.
What are Bonds Payable (debited for $1,000), Loss on Bond Retirement (debited for $90), and Cash (credited for $1,090)?
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Other Terms - $100
The term that describes a company’s ability to pay current obligations.
What is Liquidity?
Back to Board
Other Terms - $200
A prearranged agreement that allows a company to borrow money at any time up to a certain limit.
What is a Line of Credit?
Back to Board
Other Terms - $300
(Cash + Short Term Investments + Accounts Receivable, Net) divided by Current Liabilities.
What is the Quick Ratio?
Back to Board
Other Terms - $400
(Net Income + Interest Expense + Income Tax Expense)/Interest Expense.
What is the Times Interest Earned Ratio?
Back to Board
Other Terms - $500
How a contingent liability—that will probably become an actual liability, but whose probable amount cannot be estimated—is accounted for.
What is “described in a footnote”?
Back to Board
Review Potpourri - $100
Back to Board
Method of amortization that allocates the cost of an asset in equal periodic amounts over its useful life.
What is Straight-line Amortization?
Review Potpourri - $200
Back to Board
A term used to describe the acquisition cost of an asset less its accumulated amortization.
What is book (or carrying) value?
Review Potpourri - $300
Back to Board
Buy items at $1, $2, and $3 in that order; __&__ are the costs assigned to the first two items sold under FIFO.
What are $1 and $2?
Review Potpourri - $400
Back to Board
The requirement to use the least optimistic measures when the value of an asset or liability is uncertain.
What is the Conservatism?
Review Potpourri - $500
Back to Board
Accounts affected when $200 of prepaid rent is used up during the period.
What are Rent Expense (increase, debited) and Prepaid Rent (decrease, credited)?
Daily Double Specify Your Wager!
Bond Trans-x ---
Back to Board
The accounts affected when a $1,000 bond is issued at 95.
What are Cash (debited for $950), Discount on Bonds Payable (debited for $50), and Bonds Payable (credited for $1,000)?
