The multiplication of a quantity times its cost. For example, if 100 items are in inventory at a cost of $3.46 each, the inventory extension is $346.
The multiplication of a quantity times its cost. For example, if 100 items are in inventory at a cost of $3.46 each, the inventory extension is $346.
The cost transferred from one department to the next department in a process costing system.
An asset’s cost that has been assigned to Depreciation Expense.
The chief accounting officer of a company. This person would head up the accounting department.
A bond (long term note) that can be exchanged by the holder for a specified number of shares of stock in the company. The convertibility feature usually allows for the bond to have a lower interest rate when it is...
The additional amount given to employees for the overtime hours. Usually this is the “half-time” in time and one-half. For example, if an employee’s hourly pay rate is $10 per hour and the employee...
A current asset account that represents an amount of cash for making small disbursements for postage due, supplies, etc.
of accounting (generally accepted accounting principles), while the employee payroll records for the Internal Revenue Service (IRS) requires the cash method of accounting. Example of the Corporation’s Wages Expense...
A bond issued with a series (or staggering) of maturity dates.
A graph’s vertical scale that usually indicates the total dollars for the volume or units indicated by the x-axis.
A symbol that indicates the total amount of fixed costs during a specified period of time. In the equation of the straight line, y = a + bx, the total amount of fixed costs during the period is represented by...
See stockholder.
Also referred to as a shareholder. The owner of shares of stock in a corporation. Every corporation has common stock and those owners are known as common stockholders. Some corporations also issued preferred stock and...
An amount remaining after another amount is subtracted. In the accounting equation, owner’s equity is the residual of assets minus liabilities.
See return on capital employed.
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Usually a bank, finance company, or person that makes a loan to another party, who is referred to as the borrower.
See mixed expenses.
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deductions from the cash balance per the books. Electronic deposits not yet recorded by the company will become additions to the cash balance per books. Join PRO to Track Progress Mark the Question as Read Must-Watch...
(such as years). Instead, the depreciation is expressed and calculated based on the asset’s usage. Under the units-of-activity method of depreciation, the asset’s cost (less any salvage value) is allocated to the...
A shortened version of the term bank reconciliation or bank statement reconciliation.
A person who is considered to be both the employer and the employee. For example, the sole owner of a sole proprietorship is self-employed.
An asset account in a bank’s general ledger that indicates the amounts owed by borrowers to the bank as of a given date.
The amount received from the sale of an asset, from the issuance of bonds or stock, or from a bank loan.
See activity-based costing.
Costs that have been divided up and assigned to periods, departments, products, etc. In depreciation it is the asset’s cost that is assigned to each of the years that the asset is in use. In cost accounting it is...
Another word for purchasing.
A current liability account that reports the amounts owed to employees for hours worked but not yet paid as of the date of the balance sheet.
A projection or estimate of the future quantities and selling prices of products and/or services.
See consistency.
See variable manufacturing overhead spending variance and fixed manufacturing overhead budget variance. To learn more, see Explanation of Standard Costing.
In accounting and bookkeeping this term is used to describe paying a vendor more than once for the amount owed.
A bond that is callable by the issuer at a certain price. The price and other conditions are disclosed in the bond’s indenture.
See quality of earnings.
A listing of the materials included in a product. A bill of material could be thought of as a bakery’s recipe for producing one of its products.
A document that discloses various conditions and terms of the company’s bonds. It would include the call price, collateral, ramifications if interest is not paid, etc.
and ready for use. If a company purchases goods with terms such as FOB shipping point, the company will be responsible for any costs to get the products from the seller to the company’s warehouse. In that situation,...
A series of equal amounts occurring at the end of each equal time interval. Also known as an ordinary annuity. An example would be the monthly payments on a loan. Another example is the semiannual interest on a bond.
See sales.
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