A depreciation method that produces higher depreciation expense in the early years than the straight-line approach.
What is accelerated depreciation?
100
A form of interest-bearing note payable issued by corporations, universities, and governmental entities.
What is a bond?
100
A pro rata (proportional to ownership) distribution of cash to stockholders.
What is a cash dividend?
100
Cash flow activities that include (a) obtaining cash from issuing debt and repaying the amounts borrowed and (b) obtaining cash from stockholders, repurchasing shares, and paying dividends.
What are financing activities?
100
The process of comparing the bank's account balance with the company's balance, and explaining the differences to make them agree.
What is bank reconciliation?
200
The process of allocating to expense the cost of an intangible asset.
What is amortization?
200
Bond that can be converted into common stock at the bondholder's option.
What is a convertible bond?
200
A company organized as a separate legal entity with most of the rights or privileges of a person.
What is a corporation?
200
Cash flow activities that include (a) cash transactions that involve the purchase or disposal of investments and property, plant, and equipment using cash and (b) lending money and collecting the loans.
What are investing activities?
200
A projection of anticipated cash flows, usually over a one- to two-year period.
What is a cash budget?
300
Expenditure that increases the company's investment in plant assets.
What is a capital expenditure?
300
A debt that a company reasonably expects to pay (1) from existing current assets or through the creation of other current liabilities, and (2) within one year or the operating cycle, whichever is longer.
What is a current liability?
300
The date the board of directors formally authorizes the dividend and announces it to stockholders.
What is a declaration date?
300
Cash flow activities that include the cash effects of transactions that create revenues and expenses and thus enter into the determination of net income.
What are operating activities?
300
A short-term, highly liquid investment that can be readily converted to a specific amount of cash and which are relatively insensitive to interest rate changes.
What is a cash equivalent?
400
The process of allocating to expense the cost of a plant asset over its useful life in a rational and systematic manner.
What is depreciation?
400
Amount of principal due at the maturity date of the bond.
What is face value?
400
A debit balance in retained earnings.
What is a deficit?
400
Net cash provided by operating activities after adjusting for capital expenditures and dividends paid.
What is free cash flow?
400
Deposit recorded by the depositor that has not be recorded by the bank.
What is a deposit in transit?
500
Rights, privileges, and competitive advantages that result from the ownership of long-lived assets that do not possess physical substance.
What are intangible assets?
500
Obligation that a company expects to pay more than one year in the future.
What is a long-term liability?
500
Capital stock that has contractual preferences over common stock in certain areas.
What is preferred stock?
500
A measure used to evaluate a company's liquidity and short-term debt-paying ability; calculated as current assets dividend by current liabilities.
What is a current ratio?
500
A dishonest act by an employee that results in personal benefit to the employee at a cost to the employer.