The phrase used by FASB Statement 117 that describes the required focus of a nonprofit’s external financial statements. Previously the external financial statements focused on individual funds.
The phrase used by FASB Statement 117 that describes the required focus of a nonprofit’s external financial statements. Previously the external financial statements focused on individual funds.
A term used with standard costs to report a difference between actual costs and standard costs. To learn more, see Explanation of Standard Costing.
A right to buy a specific number of shares of stock at a specific price by a specific date.
See not sufficient funds (NSF) check.
See direct labor efficiency variance and direct labor rate variance.
A document that discloses important information on bonds or preferred stock. Included in the indenture would be the call price, the actions that can occur if the company fails to pay the interest or dividend, etc.
See inventory: work-in-process (WIP).
Reports too little. If an error understates the inventory and the company’s net income, the amount of inventory and the amount of net income being reported are less than the correct amounts.
A loan from a bank or other lender in which the borrower has pledged an asset as collateral in case the loan cannot be repaid in full.
A business that sells goods from inventory. The business could be a retailer, wholesaler, distributor, manufacturer, etc.
A quality of accounting information that facilitates the comparison of financial reporting of one company to the financial reporting of another company.
A special or specialized journal to record sales of merchandise to customers. In a manual system this saves a significant amount of recording time. In today’s computerized environment, sales are recorded...
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.
See line of credit.
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...
What is the meaning of debtor? Definition of Debtor A debtor is a person, company, or other entity that owes money. In other words, the debtor has a debt or legal obligation to pay the amount owed. Example of Debtor If...
Federal Unemployment Tax Act. See federal unemployment tax.
Taking out a loan or issuing bonds in order to acquire an asset or another business.
See bill of materials.
What are the disclosures for a manufacturer's inventory? A manufacturer should disclose the following categories of inventory: raw materials, work-in-process, finished goods, manufacturing supplies, and packaging...
What are consolidated statements of operations? Consolidated statements of operations is the heading appearing on the financial statement also referred to as the income statement. In a small survey of 14 U.S....
See net present value.
See inventory: work-in-process (WIP).
The term associated with payroll deductions from an employee’s gross wages or gross salary.
A document filed when a corporation is formed. Among other things, it lists the number of shares of stock that the corporation is authorized to issue.
See contingent loss.
The activities provided by a nonprofit in carrying out one of its major programs.
See last in, first out (LIFO).
Net sales revenues minus the cost of goods sold.
The moving average cost of inventory items under the perpetual inventory system. A new average cost per unit is developed after each purchase of an inventory item. To learn more, see Explanation of Inventory and Cost of...
An average that changes with an additional purchase. See perpetual moving average in Explanation of Inventory and Cost of Goods Sold.
The amounts earned on money invested. Often this is interest and dividends earned on a company’s investment in stocks and bonds of other companies.
Free Alongside Ship. Terms indicating that the seller’s price includes delivery of goods at a ship’s pier. Title to the goods will transfer to the buyer alongside the ship.
An amount that should be charged to the current accounting period as an expense.
See inventory: finished goods.
Sending merchandise to another party (an agent, consignee) in order to sell the merchandise. Also see consigned goods.
What is a source document? Definition of Source Document A source document is an original record which contains the detail that supports or substantiates a transaction that will be (or has been) entered in an accounting...
A division or department of a business whose managers are responsible for both revenues and expenses.
The cost of telephone service that was used during the period shown on the income statement.
The abbreviation of the accounting and bookkeeping term credit.
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