| Question |
Answer |
| A debit balance in a partner's capital account after allocation of gain or loss. |
Capital deficiency |
| A partner who has unlimited liability for the debts of the firm |
General partner |
| The basis for dividing net income and net loss in a partnership. |
Income ratio |
| A form of business organization, usually classified as a partnership and usually with limited life, in which partners, who are called members, have limited liability. |
Limited liability company |
| A partnership of professionals in which partners are given limited liability and the public is protected from malpractice by insurance carried by the partnership. |
Limited liability partnership |
| A partner who has limited liability for the debts of the firm. |
Limited partner |
| A partnership in which one or more general partners have unlimited liabilty and one or more partners have limited liability for the obligations of the firm. |
Limited partnership |
| All partners have credit balances after allocation of gain or loss. |
No capital deficiency |
| The owners' equity statement for a partnership which shows the changes in each partner's capital balance and in total partnership capital during the year. |
Partners' capital statement |
| An association of two or more persons to carry on as co-owners of a business for profit. |
Partnership |
| A written contract expressing the voluntary agreement of two or more individuals in a partnership. |
Partnership agreement |
| A change in partners due to withdrawl or admission, which does not necessarily terminate the business. |
Partnership dissolution |
| An event that ends both the legal and economic life of a partnership. |
Partnership liquidation |
| Corporation, with 75 or fewer stockholders, that is taxed like a partnership. |
"S" corporation |
| A schedule showing the distibution of cash to the partners in a partnership liquidation. |
Schedule of cash payments |
| A legal document that incidates the name of the issuer, the face value of bonds, and such other data as the contractual interest rate and the maturity date of the bonds. |
Bond certificate |
| A form of interest-bearing notes payable issued by corporations, universities, and governmental entities. |
Bonds |
| Bonds that are the issuing company can retire at a stated dollar amount prior to maturity. |
Callabale bonds |
| A type of lease whose characteristics make it similar to a debt-financed purchase and that is consequently accounted for in that fashion. |
Capital lease |
| Events with uncertain outcomes, such as a potential liability that may become an actual liability sometime in the future. |
Contingencies |
| Rate used to determined the amount of interest the borrower pays and inverstors receive. |
Contractual (stated) interest rate |
| Bonds that permit bondholders to convert them into common stock at their option. |
Convertible bonds |
| A debt that a company reasonably expects to pay (1) from existing current assets or through creation of other current liabilities, and (2) within one year or the operating cycle, whichever is longer. |
Current liability |
| The difference between the face value of a bond and its selling, when a bond is sold for less than its face value. |
Discount (on a bond) |
| A method of amortizing bond dicount or bond premium that results in periodic interest expense equal to a constant percentage of the carrying value of the bonds. |
Effective-interest method of amortization |
| Rate established when bonds are issued that remains constant in each interest period. |
Effective-interest rate |
| Amount of principal due at maturity date of the bond. |
Face value |
| Obligations that a company expects to pay more than one year in the future. |
Long-term liabilities |
| The rate investors demand for loaning funds to the corporation. |
Market interest rate |
| The date on which the final payment on a bond is due from the bond issuer to the investor. |
Maturity date |
| A long-term note secured by a mortgage that pledges title to specific units of property as security for the loan. |
Mortgage note payable |
| An obligation in the form of a written promissory note. |
Note payable |
| The international effort by a company to structure its financing arrangements so as to avoid showing liabilities on its books. |
Off-balance-sheet financing |
| A contractual arrangement giving the lessee temporary use of the property with continued ownership of the property by the lessor. Accounted for as a rental. |
Operating lease |
| The difference between the selling price and the face value of a bond when a bond is sold for more than its face value. |
Premium (on a bond) |
| The value today of an amount to be recieved at some date in the future after taking into account current interest rates. |
Present value |
| Bonds that have specific assets of the issuer pledged as collateral. |
Secured bonds |
| A method of amortizing bond discount or bond premium that allocates the same amount of interest expense in each interest period. |
Straight-line method of amortization |
| The relationship between time and money. A dollar received today is worth more than a dollar promised at sime time in the future |
Time value of money |
| A measure of a company's solvency, calculated by dividing income before interest expense and taxes by interest expense. |
Times interest earned ratio |
| Bonds issued against the general credit of the borrower. |
Unsecured bonds |
HHS Shrek
