acct 229 exam 3 notes

acct 229 exam 3 notes - ACCT 229 EXAM 3 Click to edit...

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Click to edit Master subtitle style 11/5/09 ACCT 229 EXAM 3
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11/5/09 CHP 9 Accrued Liabilities : expenses that have been incurred but have not been paid. current amounts owed to various parties excluding suppliers of inventory Liabilities : probable debts or obligations that result from past transactions, which will be paid with assets or services A liability is measured in terms of its
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11/5/09 Time Value of Money : interest that is associated with the use of money over time Timing of cash flows is important because money has a time value Deferred Revenues: (unearned revenues) are revenues that have been collected but not earned; they are liabilities until the goods or services are provided Contingent Liability : a potential liability that has arisen as the result
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11/5/09 Operating Lease : does not meet any of the four criteria established by GAAP and does not cause the recording of an asset and liability Capital Lease : meets at least one of the four criteria established by GAAP and results in 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
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11/5/09 Temporary Differences : are timing differences that cause deferred income taxes and will reverse, or turn around, in the future Future Value : the sum to which an amount will increase as the result of compound interest Working capital is used to fund the operating activities of a business. Changes in working capital accounts affect the statement of cash flows. Cash flows from operating activities
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11/5/09 CHP 10 Bond Principal : the amount payable at the maturity of the bond and on which the periodic cash interest payments are computed Principal = Par Value = Face Amount Debenture : an unsecured bond; no assets are specifically pledged to guarantee repayment Indenture : a bond contract that specifies the legal provisions of a bond issue
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acct 229 exam 3 notes - ACCT 229 EXAM 3 Click to edit...

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