--%>
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 : What is Service What do you mean by

    What do you mean by Service: It is an intangible product or task rendered directly to a client or customer.

    		•
  • 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

    		•
  • Q : Blackout period A defined time period

    A defined time period in accounting for stock options. In the mean while the blackout period person granted the option is not allowed to exercise it. This usually occurs after the granting of the stock options and allows the price of the stock to increase above the exercise price.  <

    		•
  • Q : Banker’s acceptance A security that

    A security that starts as an instrument similar to as check, in which a customer asks the bank to pay the designated amount to a payee in the future. The bank accepts the order, becoming responsible for payment, because the customer has the money to back the check, an

    		•
  • Q : Insurance premium in Arrears What are

    What are the Insurance premium in Arrears?

    		•
  • Q : Relationship between risk and return

    Write a short note on the relationship between risk and return?

    		•
  • Q : Define Full Cost Full Cost : The sum of

    Full Cost: The sum of all costs needed by a cost object comprising the costs of activities executed by other entities in spite of of funding sources.

    		•
  • Q : Fixed capital of partners Explain the

    Explain the term fixed capital of partners? Answer: Partners' capital is state to be fixed if the capital of Partners remains unchanged except in the situation where

    		•
  • Q : Characteristics which accounting

    What are the key qualities or characteristics which accounting information should possess?

    		•
  • Q : Changing responsibilities of the

    Write a short note on the changing responsibilities of the management accountant?

    		•