See Explanation of Standard Costing.
See Explanation of Standard Costing.
A past, historical cost. They are called sunk because a past cost cannot be changed and decisions involve only the present and the future.
A multi-column listing of the amounts needed to eliminate a balance in a systematic manner over the life of the item. For example, an amortization schedule for a 15-year mortgage loan would show the 180 payments. The...
The total of interest and principal payments required to be paid on loans payable.
A phrase used in depreciation and amortization to indicate that the expense is being allocated on a logical basis (because a cause and effect relationship does not exist).
See mixed expenses.
A balance sheet which is a projection of the amounts at a future date. It should be based on the projected, budgeted transactions.
A revenue, expense, gain, or loss account. To learn more, see Explanation of Income Statement.
A highly summarized balance sheet
See bank reconciliation.
The optimum purchase (or production) quantity which minimizes the combined total cost of carrying inventory and processing additional purchase orders (or production setups).
See income statement. To learn more, see Explanation of Income Statement.
This term is often associated with an investment in the bonds issued by another corporation if the bonds are traded on a bond exchange.
See separation of duties.
A right to buy a specific number of shares of stock at a specific price by a specific date.
Sales made on account. Sales where the customer is allowed to pay at a later date. Noncash sales.
See production service department.
Preferred stock where past, omitted dividends do not have to be paid before a dividend can be paid to common stockholders. In the case of noncumulative preferred stock, only its current year dividend needs to be paid in...
A certified public accountant (CPA) who practices accounting in his or her own firm without another CPA as a partner or shareholder.
See cost of goods sold.
A heading that includes common stock and preferred stock.
The ABC inventory system is different from activity-based costing. The ABC inventory system is used in order to focus on the most important items in inventory. Usually a relatively few items will account for a very...
Preferred stock that can be exchanged by the holder for a specified number of shares of common stock of the same company.
See post balance sheet event.
The cost associated with setting up a piece of production equipment. This would include the cost of the setup mechanic, the cost of scheduling, record keeping, moving the starting material, and testing the first few...
A budget that does not flex for changes in volume or activity.
Support that has been either temporarily or permanently restricted by the donor.
See current liabilities.
Financial statements (such as the income statement and balance sheet) that summarize much of the detail into a few major lines of information.
One of the steps in effective internal control. An example of separation of duties is to have the money handling be performed by someone who does not update the records. This means that the money counters at a church...
The amount of office supplies used during a specified time interval.
The statement of the Financial Accounting Standards Board with the title Accounting for Contributions Received and Contributions Made. This statement was originally issued in June 1993 and applies to both nonprofit...
A multicolumn listing of each payment required during the period of a loan. Each payment is detailed by the amount of interest, the principal payment, and the remaining unpaid principal balance. The interest portion of...
An accounting entry with only one account being debited and only one account being credited.
See cash surrender value.
This preferred stock feature assures the owner that any omitted dividends on this stock will be made up before the common stockholders will receive a dividend. Any omitted dividends on cumulative preferred stock are...
Journals other than the general journal. Special or specialized journals include the cash receipts journal, the cash disbursements journal, the purchases journal, and the sales journal.
A record of the details to support a general ledger account. The general ledger account is often referred to as the control account. For example, the accounts receivable subsidiary ledger provides the details to support...
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