Depreciation
The value the company expects to sell an asset for after its' useful life.
What is salvage value?
The time period for classifying a liability as current or non-current.
What is 1 Year?
The two common types of stock.
What is common stock and preferred stock?
A repeating series of payments of the same amount.
What is an annuity?
The process of an indirect statement of cash flows adjusts operating activities from an accrual basis of accounting to a ______ basis of accounting.
What is cash?
The only plant asset to not be depreciated.
What is Land?
This is the amount we credit to Bonds/Notes Payable on issuance.
What is principal/face value?
The minimum legal price a corporation can sell stock for.
What is par value?
The 4 time value of money tables.
What is present value of 1, present value of an annuity, future value of 1 and future value of an annuity?
The result of a purchase of $500 of equipment.
What is $500 of cash used for investing activities?
A depreciation method that calculates annual depreciation expense based on book value at the beginning of each year.
What is declining balance depreciation?
These are the two accounts used when interest is accrued.
What is Interest Expense and Interest Payable?
The class of stock that *generally* receives no voting rights in exchange for an annual dividend and a greater claim on assets in the case of dissolution.
What is preferred stock?
For a bond with a principal of $100, interest of 5%, a market rate of 8%, and length of 7 years, what is the amount of the annual interest payment?
What is $5?
The three types of activities in the statement of cash flows.
What are operating activities, investing activities, and financing activities?
An account that is only created when a company purchases another company.
What is Goodwill?
This is the method for calculating a bond's market value at issuance.
What is adding the present value of the principal to the present value of the interest payments?
The effect of treasury stock on the balance sheet.
What is a reduction to Stockholder's Equity?
When calculating a bond with a principal of $1000, an interest rate of 5%, a market rate of 8%, and a time period of 10 years, what table, % and time would you use for calculating the present value of the principal?
What is PVSS (8%, 10)
This is the effect a $200 increase of accounts receivable would have on total cash provided by operating activities.
What is a $200 decrease?
This depreciation method does not use a salvage value.
What is declining balance depreciation?
These bonds arise when the market rate is lower than the interest rate.
What are bonds issued at a premium?
This is the closing journal entry for a net loss of $100.
What is Debit Retained earnings for $100, and Credit income summary for $100?
When calculating a semi-annual bond with a principal of $1000, an interest rate of 4%, a market rate of 6%, and a time period of 8 years, what table, % and time would you use for calculating the present value of the principal?
What is PVSS (3%, n=16)
What non-cash expense is always added back in adjustments to net income in the indirect method of preparing a statement of cash flows?
What is depreciation expense?