See sales.
See sales.
What is the difference between an invoice and a statement? Definition of an Invoice An invoice received from a supplier shows the items purchased, the cost per unit, the total cost or extension of each item, the total of...
The internal growth of a company’s existing businesses. Organic growth excludes the additional sales resulting from acquiring another company.
The result of subtracting total liabilities from total assets. It is also the term used by not-for-profit organizations instead of owner’s equity or stockholders’ equity. To learn more see our Explanation of...
The owner of property that often receives rent from tenants.
The provider of goods or services. Also known as the vendor.
For a manufacturer these would include factory supplies and other materials considered to be manufacturing overhead.
Support that has been either temporarily or permanently restricted by the donor.
Also referred to as manufacturing overhead, indirect manufacturing costs, factory burden, and manufacturing support costs. To learn more, see Explanation of Manufacturing Overhead.
A bond with collateral.
A bill issued by a seller of merchandise or by the provider of services. The seller refers to the invoice as a sales invoice and the buyer refers to the same invoice as a vendor invoice.
See internal rate of return.
Relevant or meaningful data.
See cost-volume-profit (CVP).
An invoice or other document received from a vendor, supplier, etc. usually for goods or services received. Also a verb to indicate that a customer’s sales invoice should be prepared for goods or services.
The products with significant value that emerge at a split-off point in a process. When a joint product has little value it is referred to as a by-product.
What is a liquidity ratio? Definition of Liquidity Ratio A liquidity ratio is a financial ratio that indicates whether a company’s current assets will be sufficient to meet the company’s obligations when they become...
See direct labor efficiency variance and variable manufacturing overhead efficiency variance.
A reduction of a markup. In the retail method of estimating inventory, it could mean the elimination of part or all of the additional markup. For example, if an item with a cost of $10 would normally be priced at $15,...
See full disclosure principle.
One of the types of donor-imposed temporary restrictions. An example of a purpose restriction is a cash donation with a donor-imposed requirement that the money be used only to purchase a vehicle for one of its programs....
Benefits provided by a company to retirees. Typical examples of potential benefits are pensions, life insurance, and health insurance.
A common cost. Often refers to the costs prior to the point where several products emerge from a common process.
Billing a client based on the value of the information or service provided rather than billing based on time spent.
Manufactured products that are often expressed in units, machine hours, etc.
An amount earned by a company on its interest bearing bank accounts or other investments. The amount should be reported as Interest Revenues, Interest Income, or Investment Revenues in the accounting period in which the...
A distribution of part of a corporation’s past profits to its stockholders. A dividend is not an expense on the corporation’s income statement.
Part of stockholders’ equity representing the fair market value of an asset at the time it was received as a gift. For example, a corporation may be given a large tract of land from a community if the corporation...
The British term for controller.
Suppliers. Companies that provide goods or services.
Usually means to scrap a long-term plant asset and receive no proceeds from its disposal.
In accounting, cost is defined as the cash amount (or the cash equivalent) given up for an asset. Cost includes all costs necessary to get an asset in place and ready for use. For example, the cost of an item in...
A statistic known as the coefficient of determination. This statistic indicates the percent change in the dependent variable that is explained by the change in the independent variable(s).
What is the gross profit method of inventory? Definition of Gross Profit Method The gross profit method is a technique for estimating the amount of ending inventory. The gross profit method might be used to estimate each...
In financial accounting this term often refers to the accounting guidelines or principles of conservatism and materiality.
Comparable amounts from several years are expressed as a percentage of the amount during a base year. For example, sales from each year of 2014 through 2023 are presented as a percentage of the sales during 2014.
How many years is the appropriate time for depreciating leasehold improvements? Leasehold improvements should be depreciated or amortized according to the lessee’s normal depreciation policy except that the time period...
An employee’s pretax compensation based on hours worked times an hourly rate of pay. Production workers and nonmanagement employees are usually paid wages. To learn more, see Explanation of Payroll Accounting.
The record of journal entries appearing in order by date. Some refer to the journal as the book of original entry, since the entries are first recorded in a journal. From the journal the entries will be posted to the...
Featured Review
"I initially signed up as a member with AccountingCoach when I was in college for my accounting degree, and I can honestly say that AccountingCoach not only helped me pass college but also put me on the dean’s list for five semesters straight. Even after college, whenever I had to look up accounting information that I forgot or needed to refresh, AccountingCoach was always there for me to go back on and refresh my memory so I can always be on top of the game at work. Currently, I am a tax accountant with a focus on cryptocurrency, and I can honestly say I still use AccountingCoach to this day over 8 years later." - Aaron S.
Join PRO or PRO Plus and Get Lifetime Access to Our Premium Materials
Read all 2,645 reviews
For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.
We now offer 10 Certificates of Achievement for Introductory Accounting and Bookkeeping: