The top ranking financial person in the corporation.
The top ranking financial person in the corporation.
Officers of a corporation are appointed by the board of directors to execute the policies that have been established by the board of directors. The officers include the chief executive officer (CEO), the chief operations...
What is the role of a company's controller? Author: Harold Averkamp, CPA, MBA Definition of Company Controller A company’s controller is considered to be the chief accounting officer and the head of the accounting...
Our Explanation of Stockholders' Equity covers the unique terminology for a corporation's paid-in capital, retained earnings, treasury stock, and accumulated other comprehensive income. Included are cash dividends, stock...
Usually the top ranking officer of the corporation who is charged with executing the policies set by the board of directors.
A top ranking corporation official usually reporting to the chief executive officer and responsible for the operations of the corporation.
See chief financial officer.
See chief operating officer.
The chief accounting officer of a company. This person would head up the accounting department.
See chief executive officer.
This financial statistic is the net income of a corporation after income tax (less any preferred dividends) divided by the weighted average number of shares of common stock outstanding during the same period of time.
What is the difference between Rent Receivable and Rent Payable? Author: Harold Averkamp, CPA, MBA Definition of Rent Receivable Rent Receivable is an asset account in the general ledger of a landlord which reports the...
What is the dividend yield? Author: Harold Averkamp, CPA, MBA The dividend yield is the annual cash dividend per share of common stock divided by the market price of a share of the common stock. Usually, fast growing...
An allowance granted to a customer who had purchased merchandise with a pricing error or other problem not involving the return of goods. If the customer purchased on credit, a sales allowance will involve a debit to...
Which date is used to record a credit card transaction? Author: Harold Averkamp, CPA, MBA When a business uses its credit card, the transaction date is the date the credit card is used, not the date that the credit card...
Why is an increase in inventory shown as a negative amount in the statement of cash flows? Author: Harold Averkamp, CPA, MBA Meaning of a Negative Amount on Statement of Cash Flows A negative amount on the statement of...
Someone who performs a task for a company, but is not an employee. The IRS has criteria to assist in distinguishing between an independent contractor and an employee.
A current asset account that reports the amount of future rent expense that was paid in advance of the rental period. The amount reported on the balance sheet is the amount that has not yet been used or expired as of the...
Usually a claim on an asset that is pledged as collateral. The lien is usually filed with a government office.
Under accrual accounting it is the rent earned during the period indicated in the heading of the income statement, regardless of when the money is received from the tenant.
What is an intangible asset? Author: Harold Averkamp, CPA, MBA Definition of Intangible Asset An intangible asset is an asset that you cannot touch, since it lacks physical substance. Accountants record intangible assets...
What is a fixed cost? Author: Harold Averkamp, CPA, MBA Definition of Fixed Cost A fixed cost is one that does not change in total within a reasonable range of activity. Since the fixed cost remains constant in total,...
When should costs be expensed and when should costs be capitalized? Author: Harold Averkamp, CPA, MBA Definition of Costs In the context of the question, costs are the amounts paid in exchange for materials, products, or...
What are semivariable costs? Author: Harold Averkamp, CPA, MBA Definition of Semivariable Costs Semivariable costs are costs or expenses whose behavior is partially fixed and partially variable. That is, part of the...
The amount of office supplies used during a specified time interval.
The cost to operate office equipment during a specified time interval.
A long-term asset account reported on the balance sheet under the heading of property, plant, and equipment. Included in this account would be copiers, computers, printers, fax machines, etc.
Are repairs to office equipment an expense? Author: Harold Averkamp, CPA, MBA Repairing and maintaining office equipment is an immediate expense. This is true even if the repair cost is a very large amount. If a large...
Where is the discount on the purchase of office furniture recorded? Author: Harold Averkamp, CPA, MBA Definition of Discount on Purchase of Office Furniture The discount on the purchase of office furniture that will be...
In the 1970’s the Financial Accounting Standards Board (FASB) articulated three objectives of financial reporting. In summary, financial information should (1) be useful to investors and lenders, (2) be helpful in...
Financial statements issued between the official annual financial statements. For example, quarterly financial statements are interim financial statements.
What is financial reporting? Author: Harold Averkamp, CPA, MBA Definition of Financial Reporting Financial reporting includes all of a company’s communication of financial information to people outside of the company....
One of the main financial statements of a nonprofit organization. This financial statement reports the amounts of assets, liabilities, and net assets as of a specified date. This financial statement is similar to the...
Financial statement and other financial information distributed to people outside of a company.
Financial Accounting Author: Harold Averkamp, CPA, MBA 114 Q&A Popular Recent What is the accrual basis of accounting? What is the distinction between debtor and creditor? What is accounting? Where do dividends appear on...
Financial statements that bear the report of independent auditors attesting to the financial statements’ fairness and compliance with generally accepted accounting principles.
Financial statements that reflect the total economic entity. For example, on a consolidated income statement a corporation having several subsidiaries would report the total of all of its companies’ sales that were...
Refers to the accounting associated with the preparation of the main financial statements: income statement, balance sheet, statement of cash flows, statement of retained earnings, statement of stockholders’...
Financial statements (such as the income statement and balance sheet) that summarize much of the detail into a few major lines of information.
Featured Review
"Thank you AccountingCoach, you have helped me over the last 8 years of study and guided me to my dream job of becoming an accountant. I've answered and explained all the hard questions that I needed to get me where I am today I certainly couldn't have done it without you! I will continue to use AccountingCoach PRO for the rest of my career. You are the best." - Gillian L.
Join PRO or PRO Plus and Get Lifetime Access to Our Premium Materials
Read all 2,645 reviewsWe now offer 10 Certificates of Achievement for Introductory Accounting and Bookkeeping: