ACG 2021 Block 3 Financial Accounting Flashcards

A comprehensive set of vocabulary flashcards covering key accounting terms from Chapters 8, 9, and 10 as presented in the ACG 2021 Block 3 review notes.

Accounts payable account

Amounts owed for products or services purchased on account

Short-term notes payable account

Account used to borrow cash or purchase asset and due within one year

Deferred (Unearned) revenue account

Account used when a business receives cash before services or products are provided to customers

CPLTD account

Amount of long-term debt principal payable within the next $12\,months$

Sales Tax Payable account

Sales taxes collected from customers to be remitted periodically to the state and local governments

Contingent liability account

An existing, uncertain situation that might result in a loss

Warranty expense account

Account used to record expense in the same accounting period as the sale based on the matching principle

Warranty payable account

The liability account set up when warranty expense is recognized and is used to account for warranty work performed in the future

Bonds Payable Account

Formal debt instrument that obligates the borrower to repay a stated amount, referred to as the principal or face amount, at a specified maturity date

Secured Bonds

Bonds backed by collateral

Unsecured bonds

Bonds not backed by collateral

Serial bonds

Bond issue that matures in installments

Term bonds

Bond issue that matures on a single date

Callable Bond

A bond where the borrower can pay off the bond early at a specified call price

Convertible bonds

Bonds where the lender can convert bonds into a specified number of shares of common stock

Stated Rate

The rate set on the face of the bond and stated in the bond contract

Long-term Debt

Debt that matures in over $12\,months$

Operating Leases

A type of lease that is like a rental

Capital Leases

Occurs when a lessee buys an asset and borrows the money through a lease to pay for the asset

Paid in Capital

Total amount stockholders have invested in the corporation, including common stock, preferred stock, and additional paid in capital

Earned Capital

Amount of earnings the corporation has retained

Treasury Stock

A contra equity account representing a corporation’s stock that is reacquired

Common stock account

Basic form of stock issued by corporation

Par value of stock

Arbitrary amount assigned to share of stock in the articles of incorporation

Retained earnings account

Represents the earnings retained in the corporation that are not paid out as dividends to stockholders

Dividends account

Distribution to the shareholders of a corporation usually based on earnings