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Principles of Financial Accounting Exam 3 Review

Horizontales
Length of time an asset is estimated to be used productively in service.
Accelerated depreciation method
Paid by employers for the federal government unemployment insurance program.
Obligations due within one year or the company's operating cycle, whichever is longer.
Take-home pay
Occurs when a company issues bonds with a contract rate less than the market rate.
Residual value
IRS depreciation method
Bond par value x Contract rate x Time
Process of cost allocation for intangible assets with a limited life.
Process of allocating the cost of a natural resource to the period when it is consumed
Verticales
Decreases the amount of bond interest expense.
This is asset cannot be depreciated.
Federal Insurance Contributions Act taxes: Social Security and Medicare
Total compensation an employee earned before deductions.
Depreciation method that charges the same amount of depreciation expense each period.
Account set up by the seller to pay sales taxes collected from customers.
Collections are received in advance for future products or services.
Tangible assets used in a company's operations that have a useful life of more than one accounting period.
Depreciation method in which usage determines depreciation expense.
Obligation requiring a series of payments to the lender.
Legal contract between the issuer and the bondholders.
Process of allocating the cost of a plant asset.