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Acc201 Chapter 10 terms

Acc201 Chapter 10 terms - Future Value The sum to which an...

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Accrued Liabilities Expenses that have been incurred but have not been paid at the end of the accounting period. Annuity A series of periodic cash receipts or payments that are equal in amount each interest period. Capital Lease meets at least one of the four criteria established by GAAP and results in the recording of an asset and liability. Contingent Liability Potential liability that has arisen as the result of a past event; not an effective liability until some future event occurs. Current Liabilities Short-term obligations that will be paid in cash (or other current assets) within the current operating cycle or one year, whichever is longer. Deferred Revenues Previously recorded liabilities that need to be adjusted at the end of the period to reflect the amount of revenue earned. Deferred Tax Items Timing differences caused by reporting revenues and expenses according to GAAP on a company's income statement and according to the Internal Revenue Code on the tax return.
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Unformatted text preview: Future Value The sum to which an amount will increase as the result of compound interest. Liabilities Probable debts or obligations of the entity that result from past transactions, which will be paid with assets or services. Liquidity The ability to pay current obligations. Long-Term Liabilities All of the entity's obligations that are not classified as current liabilities. Operating Lease Does not meet any of the four criteria established by GAAP and does not cause the recording of an asset and liability. Present Value The current value of an amount to be received in the future; a future amount discounted for compound interest. Temporary Differences Timing differences that cause deferred income taxes and will reverse, or turn around, in the future. Time Value of Money Interest that is associated with the use of money over time. Working Capital The dollar difference between total current assets and total current liabilities....
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