--%>
Assignment Help - homework help

Adjunct account

 

An account in financial reporting that increases the book value of a liability account. An adjunct account is a valuable account from which credit balances are added to another account. For example, if a company issue bonds, the unauthorized premium on bonds payable account (sometimes called bond premium) is an adjunct account because its credit balance is added to the bonds payable account. Since a liability account's normal balance is a credit balance, the premium account is an adjunct account (its credit balances are added to a separate accounts). This is in contrast to a contra account, as a discount on bond payable account would result in a debit to a liability account. 

 

 

 

   Related Questions in Managerial Accounting

  • Q : Define Cost Cost : The monetary value

    Cost: The monetary value of resources employed or liabilities or sacrificed incurred to attain an objective, such as to obtain or make a good or to execute an activity or service.

    		•
  • Q : Contents of a partnership deed State

    State some contents of a partnership deed. Answer: A) Name of the firm.B) Name and complete address of the Partners.C) The date of formation and period of Partnership.D) Ratio in which gain or loss

    		•
  • Q : Define Employee Stock Ownership

    Employee Stock Ownership: It is a qualified, defined contribution, employee benefit (that is, ERISA) plan designed to invest mainly in the stock of sponsoring employer. ESOPs are "qualified" in the logic that the ESOP's sponsoring company, the selling

    		•
  • Q : Main working areas of the Marketing

    Write a short note on the main working areas of the Marketing department?

    		•
  • Q : What is Variable Cost Variable Cost : A

    Variable Cost: A cost which differs with changes in the level of an activity, whenever the other factors are held constant. The cost of material treating to an activity, for illustration, differs according to the number of material de

    		•
  • Q : Accrued liability Normal 0 false false

    Normal 0

  • Q : Define Inter-Entity Inter-Entity : A

    Inter-Entity: A term meaning between or among distinct federal reporting entities. It generally refers to the activities or costs among two or more agencies, bureaus or departments.

    		•
  • Q : Operation of business

    What are the main reasons that the operation of business environment has become ever more turbulent and competitive?

    		•
  • Q : Accumulated adjustments account Normal

    Normal 0

  • Q : Appropriations The term used in

    The term used in governmental accounting to identify amounts that the governmental unit is authorized to spend for debt repayment, operating activities, and asset acquisition. The appropriations account is a budgetary account that acts as a control account for all budgeted expenditures. More usua

    		•