Chapter 11
An entity created by law that is separate from its owners..
What is corporate form of organization?
The contract between the bond issuer and the bondholders.
What is a bond indenture?
Obligations of a company due within one year.
What are short term liabilities?
Used to report major cash inflows and outflows during a period.
What is the Statement of Cash Flows?
They elect the Board of Directors.
What are shareholders/stockholders?
Bonds are sold for an amount less than the face value.
What is a discount?
A seller's obligation to replace or correct a product that fails to perform as expected within a specified period.
What is a warranty liability?
Transactions and events that determine net income.
What are operating activities?
They decide whether or not to pay dividends.
What are the Board of Directors?
Par Value of a Bond * Contract Rate/2
What is a semi annual interest payment?
Obligations due after one year.
What are long term liabilities.
Transactions and events that affect long-term liabilities.
What are financing activities?
When a corporation obtains its own shares of stock.
What is Treasury Stock?
What is the debt to equity ratio?
Depends on the likelihood that a future event will occur and the ability to estimate the future amount owed.
What are contingent liabilities?
Transactions and events that affect long term assets.
What are investing activities?
If stock is issued at an amount in excess of stated value.
What is paid in capital in excess of stated value?
Bonds are sold for an amount greater than face value.
What is a premium?
Also known as take home pay.
What is net pay?
Comparative Balance Sheet and Income Statements.
What do you need to complete a Statement of Cash Flows?