Point of purchase.
Point of purchase.
Assets such as Cash, Temporary Investments, and Accounts Receivable.
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...
Expenses which do not change in response to reasonable changes in sales or other activity.
The general guidelines and principles, standards and detailed rules, plus industry practices that exist for financial reporting. Often referred to by its acronymn GAAP. To learn more, see Explanation of Accounting...
Costs that are common to several products, processes, activities, departments, territories, etc. Often common costs are subsequently allocated to each of the joint products, joint processes, etc. in order to determine...
Under the accrual method of accounting, this account reports the amount of holiday pay, vacation pay, and sick day pay that the warehouse employees have earned during the accounting period indicated in the heading of the...
See FOB destination and FOB shipping point.
Amounts spent for property, plant and equipment.
See job order costing.
The party owning an asset and receiving rent from another party (the lessee).
Usually a department within a company that is responsible for its costs but not revenues or profit.
A report prepared by a professional appraiser with detailed information on the calculation of an asset’s current market value.
A lien on real estate to protect a lender. The loan made with such security is referred to as a mortgage loan.
A financial statement that reports the current year information contained in the general ledger account Retained Earnings. The statement will include the beginning balance, prior period adjustments, net income for the...
Usually a current asset that reports the amount of rent that the landlord/owner has earned, but has not been received as of the date of the balance sheet.
A liability account with a debit balance. Discount on Bonds Payable is a contra account associated with the liability account Bonds Payable.
See bond issue costs.
See certificate of deposit.
Preferred stock that can be exchanged by the holder for a specified number of shares of common stock of the same company.
Transfer of an asset’s title from seller to buyer for a stated amount. The transfer/sale occurs at the shipping point (if terms are FOB shipping point), at the time when the item reaches the destination (if terms...
See Explanation of Standard Costing.
Accounts that have some restrictions. For example, an investment account and a cash account might be restricted for the construction of a new factory. The restrictions mean that these accounts be reported as a long-term...
Receivables other than Accounts Receivable. Examples include amounts due from employees and income tax refunds receivable.
A bond without a stated interest rate. Because no interest is paid, the bond will sell for a discount from its maturity value. Rather than receiving interest, an investor’s compensation will be the difference...
Usually the pay for the hours worked in excess of 40 hours per week. Federal laws require payment for these hours for employees who are not able to control their hours. For example, a company is required to pay a...
See outstanding checks.
The term used by manufacturers to indicate that its manufacturing overhead applied or assigned to its output is less than the amount actually incurred.
See external financial reporting.
See direct labor efficiency variance.
Costs that are matched with revenues on the income statement. For example, Cost of Goods Sold is an expense caused by Sales. Insurance Expense, Wages Expense, Advertising Expense, Interest Expense are expenses matched...
Under the accrual method of accounting, this account reports the employer’s portion of the Social Security and Medicare tax that pertains to the period indicated in the heading of the income statement, whether or...
See uncleared check.
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...
A part of a manufacturer’s inventory that includes direct and indirect materials. Also referred to as stores.
This is an administrative expense which reports the fees incurred by a company for the expenses associated with its checking account transactions.
See chief operating officer.
The United States Internal Revenue Code which contains the federal laws and regulations pertaining to federal taxes.
A non-operating or “other” reduction in net income resulting from a judgment against the company. It is shown in the accounting period when the amount is determined to be probable and the amount can be...
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