See inventory shrinkage.
See inventory shrinkage.
Using debt (such as loans and bonds) to acquire more assets than would be possible by using only owners’ funds. Also referred to as trading on equity.
See not sufficient funds check.
See indirect manufacturing costs.
See first-in, still here (FISH).
See petty cash replenishment.
A liability account in a bank’s general ledger that indicates the amounts owed to bank customers for the balances in the customers’ individual checking, savings, and certificate of deposit accounts.
Work-in-progress is the long-term asset account that is used to report the amounts spent on the construction of buildings and equipment until the asset is completed and put into service.
Statement of Cash Flows. See Explanation of Cash Flow Statement.
Regular fees or charges often paid to an organization at regular intervals. For example, a state CPA organization might have annual dues of $200.
A publication by the U.S. Internal Revenue Service (IRS) to assist employers with federal payroll taxes. The complete title of the publication is Publication 15 (Circular E), Employer’s Tax Guide. It is available...
See bond sinking fund.
A driver of a change in the amount of a dependent variable. The independent variable is usually represented by “x”, the dependent variable by “y”, the rate of change by “b”, and the...
A form of business entity having partners. (Consult with an attorney about this form of entity versus alternatives.)
To loan money for a limited time in exchange for the borrower’s promise of repayment and interest compensation.
The expense incurred during the time interval indicated on the income statement for using rented equipment.
The compensation earned by employees who are paid on an hourly basis. It is common for production workers to earn wages, since they are usually paid via an hourly rate.
The direct method could refer to the method of preparing the statement of cash flows. The direct method could also refer to the method of allocating a manufacturing facility’s service departments to its production...
See inventory conformity rule.
A temporary account that is debited when cash dividends have been declared (instead of debiting the Retained Earnings account. At the end of the accounting year, the balance in this account is transferred to the Retained...
An employee fringe benefit provided by an employer that allows employees to be paid for a limited number of days per year when the employees are ill.
A formal, written promise to pay interest and to repay the principal amount.
A financial ratio that expresses the income statement effect from employing an asset as a percentage of the asset’s cost on the balance sheet.
A shortened version of the term bank reconciliation or bank statement reconciliation.
The interest rate stated on a bond. This is also referred to as the face interest rate, nominal interest rate, and coupon rate.
A trademark associated with a service rather than a product.
Fees earned from providing services and the amounts of merchandise sold. Under the accrual basis of accounting, revenues are recorded at the time of delivering the service or the merchandise, even if cash is not received...
One component of the payroll tax referred to as FICA. (The other component of the FICA tax is the Medicare tax.) The Social Security tax is levied by the U.S. government on both the employee and the employer. In 2024 the...
A sole proprietorship, partnership, or corporation organized for the purpose of earning profits and enhancing the financial position of the owners.
See line of credit.
The percentage resulting from dividing the dividends per share by the market price per share.
See inventory carrying costs.
To learn more, see our Financial Ratios Outline.
A heading that includes common stock and preferred stock.
A variance arising in a standard costing system that indicates the difference between the standard amount of variable manufacturing overhead for the good units produced (standard hours times standard rate) and the...
A cash dividend that has been declared by the board of directors, but not yet paid.
See sole proprietorship.
The amount by which actual costs exceed the standard costs or budgeted costs. Also, the amount by which actual revenues are less than the budgeted revenues.
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