A tax usually paid by the employer based on the first $7,000 to $30,000+ (varies by state) of each employee’s annual salaries and wages. The majority of the tax is paid to the state, since the state administers the...
A tax usually paid by the employer based on the first $7,000 to $30,000+ (varies by state) of each employee’s annual salaries and wages. The majority of the tax is paid to the state, since the state administers the...
See interest revenues.
A contra liability account arising when the proceeds of a note payable is less than the face amount of the note. The debit balance in this account will be amortized to interest expense over the life of the note.
The U.S. government agency responsible for federal income tax regulations.
The current price for a commodity or other item to be delivered immediately.
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...
This term is used in place of retained earnings when the balance in the retained earnings account is negative (a debit balance).
See external financial reporting.
The preparation of financial statements from a client’s information and without any review or audit of the amounts.
A parody of FIFO used to describe a very slow-moving item in inventory.
The party who delivered its goods to another party (consignee). The objective is for consignee to sell the goods for the consignor. Also see consigned goods.
Management information system.
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...
An amount that is expensed immediately. For example, routine repair costs on equipment are revenue expenditures because they are charged directly to an income statement account such as Repairs and Maintenance Expense.
Receivables other than Accounts Receivable. Examples include amounts due from employees and income tax refunds receivable.
See direct labor efficiency variance.
A phrase used in standard costing. The production that is acceptable (not rejected products) and which is assigned manufacturing costs of direct materials, direct labor, and manufacturing overhead.
Cash that can be used only for the purpose intended.
The cost accounting system where similar units are mass produced. Costs are collected by department and are then assigned to the units produced.
A selling expense account shown on the income statement in order to match this expense to the related sales.
See certified public accountant.
See dividends in arrears.
Also referred to as draws. These are a reduction of owner’s equity, but are not a business expense and they do not appear on the sole proprietorship’s income statement.
Costs that have been used up or consumed. Expired costs are reported as expenses. (Costs that have not yet expired are reported as assets.)
Financial Statements Video Training Part 8 Balance sheet: working capital, current ratio, financial leverage, notes to financial statements, comparative balance sheets Must-Watch Video Learn How to Advance Your...
See endowment fund.
See our Break-even Point Outline.
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...
See equivalent units of production.
That part of the accounting system which contains the balance sheet and income statement accounts used for recording transactions.
The British term for controller.
A current asset account that represents an amount of cash for making small disbursements for postage due, supplies, etc.
An asset’s cost that has been assigned to Depreciation Expense.
One hundredth (1/100) of a percentage point. In other words, one percentage point is equal to 100 basis points. The difference between an interest rate of 6.5% and 6.75% is 25 basis points.
The cost transferred from one department to the next department in a process costing system.
A term that is sometimes used interchangeably with gross profit. Others use the term to mean the percentage of gross profit dollars divided by net sales dollars.
This account is a non-operating or “other” expense for the cost of borrowed money or other credit. The amount of interest expense appearing on the income statement is the cost of the money that was used...
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