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Accounting 2102 Final Chapter 13
Flash Cards for Accounting 2102 Final
21
Accounting
Undergraduate 2
12/06/2013

Additional Accounting Flashcards

 


 

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Term
Debit Securities
Definition
notes and bonds, that pay interest, and have a fixed maturity date
Term
Equity Securities
Definition
preferred and common stock that represent ownership in a company and do not have a fixed maturity date
Term
Investments
Definition

Debit and Equity Securities, reported in the Current Assets section of Balance Sheet

 

Term
Cost Method
Definition

used when investor owns less than 20% of company, entries recorded for:

Purchase of Stock

Reciept of Dividends

Sale of Stock

Term
Equity Method
Definition
20%-50% of company owned, significant influence over company, investment account is adjusted for owners share of net income, and dividends.
Term
Net Income
Definition
Recorded as an increase in the investment account
Term
Dividends
Definition
Decrease in the investment account
Term
Business Combination
Definition
more than 50% of company owned, control over company,
Term
Parent Company
Definition
corporation owning all or a majority of the voting stock of another corporation
Term
Subsidiary Company
Definition
corporation that is controlled by Parent corporation
Term
Consolidated Financial Statements
Definition
Combined financial statements of Parent Company, and Subsidiary Company, issued at the end of the year.
Term
Trading Securities
Definition
debt and equity securities that are purchased and sold to earn short-term profits from changes in their market prices, current assets on balance sheet.
Term
Fair Value
Definition
market price that would be recieved for a security if it were sold, or used to pay off an asset, done under normal not distressed circumstances.
Term
Unrealized Gain or Loss
Definition
changes in fair value of the portfolio
Term
Available for Sale Securities
Definition
Debit and Equity securities that are neither held for trading, held to maturity, or held for strategic reasons
Term
Held to Maturity Securities
Definition
debt investments, such as notes or bonds, that a company intends to hold until their maturity date
Term
Dividend Yield
Definition

rate of return to stockholders based on cash dividends distributed.

Calculated:

Dividend Yield=(Dividends per common share of stock)/         Market Price per share of stock

Term
Comprehensive Income
Definition
all changes in stockholders' equity during a period, except those resulting from dividends and stockholders' investments
Term
Other Comprehensive Income
Definition
Unrealized gains and losses on available-for-sale securities as well as other items such as foreign currency and pension liability adjustments
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