What is meant by No Par Stock? No Par Stock is the capital stock that has no par or stated value placed on it by the board of directors.
What is meant by Nominal Interest Rate? A stated interest rate that is specified on the note or bond at the time it is issued, and that does not change over the life of note or bond.
What is Notes Payable? – Definition Notes payable is a liability that results from purchases of goods and services or loans. Usually, a written instrument that includes interest. It is a form of Long-term Debt. Explanation A firm may issue along-term note payable for a variety of reasons. For example, notes may be issued to …
What are Natural Resources? Natural resources are the physical substances that when extracted from the ground are converted into inventory, and when sold, produce revenues for the firm.
What is the net method of recoding sales discounts? A method of recording sales discounts in which the receivable and sale are recorded at the net of the allowable discount.
What is the net method of recording purchase discounts? Net method of recording purchase discounts is a method of recording purchase discounts in which the purchase and accounts payable are recorded at the net of the allowable discount. Explanation The net method of recording purchase discounts records the purchase and the accounts payable net of …
What are Nonmonetary Assets? Nonmonetary assets are those assets other than cash are the rights to receive cash, that can generate future revenues, such as property, plant, and equipment. Explanation Noncurrent, nonmonetary assets are often broken down into two categories: tangible and intangible; Tangible assets include property, plant; and equipment and other similar productive assets …
What is meant by Net Book Value? Net Book Value is the difference between the cost of a depreciable asset and the associated accumulated depreciation.
What are Nominal (temporary) Accounts? Nominal Accounts are the separate revenue and expense accounts used only during the period, which have a zero balance at the beginning of each period. These accounts are closed to retained earnings at the end of each period.
How to define accounting term Net Income? Net income may be defined as the difference between the total of revenues and gains and the total of expenses and losses.
What are Net Assets? Net Assets is the term referring to owners’ equity, assets minus liabilities.