Regular fees or charges often paid to an organization at regular intervals. For example, a state CPA organization might have annual dues of $200.
Regular fees or charges often paid to an organization at regular intervals. For example, a state CPA organization might have annual dues of $200.
The systematic allocation of the cost of a natural resource from the balance sheet to the income statement.
More formally known as the Uniform CPA Examination. This rigorous, 14-hour, computer-based exam consists of questions developed by the American Institute of Certified Public Accountants. The exam is in English only and...
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...
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.
See line of credit.
The last-in, first-out cost flow assumption under the perpetual inventory system. The last (most recent) costs as of the time that goods are sold are the first costs removed from inventory. The oldest costs as of the...
To eliminate debt such as a company’s repurchase or retirement of its outstanding bonds.
Gains result from the sale of an asset (other than inventory). A gain is measured by the proceeds from the sale minus the amount shown on the company’s books. Since the gain is outside of the main activity of a...
Usually a claim on an asset that is pledged as collateral. The lien is usually filed with a government office.
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.
Usually means every two weeks. For example, if an employee is paid every other Thursday, the employee is paid biweekly. The person paid biweekly will receive 26 paychecks per year. (People paid two times per month...
A series of equal amounts occurring at the end of each equal time interval. Also known as an annuity in arrears. An example is the monthly payments on a loan. Another example is the semiannual interest on a bond.
The statistic known as the coefficient of correlation. The range of this statistic is -1 to +1. When this statistic is squared the result is the percentage change in the dependent variable y that is explained by the...
See return on investment (ROI).
Generally a long term liability account containing the face amount, par amount, or maturity amount of the bonds issued by a company that are outstanding as of the balance sheet date. To learn more about bonds payable,...
A bond that is callable by the issuer at a certain price. The price and other conditions are disclosed in the bond’s indenture.
See Public Company Accounting Oversight Board (PCAOB).
See purchase order.
See accelerated depreciation.
A decentralized division of a corporation which is responsible for and has control over its costs, revenues, and investments.
The formal planning for significant expenditures, such as property, plant and equipment.
A loan from a bank or other lender for which the borrower is not required to pledge assets as collateral for the loan.
Manufacturing overhead assigned to units of output. Often this is applied via a standard overhead rate. See the Explanation of Standard Costing.
The activities provided by a nonprofit in carrying out one of its major programs.
An asset account in a bank’s general ledger that indicates the amount at which the bank is reporting or carrying its investments.
The difference in total revenues between alternative actions or plans.
A bond (long-term debt) that is secured by a lien on real estate.
The current asset which reports the cost of a retailer’s, wholesaler’s, or distributor’s goods purchased to be resold, which have not yet been sold as of the balance sheet date.
A constant or unchanging amount that is often used when referring to petty cash. For example, if the petty cash account in the general ledger has an imprest balance of $100, the account balance will be a constant $100....
See Explanation of Standard Costing.
This account shows the amount of delivery expense incurred (occurring) during the accounting period shown in the heading of the income statement. The title of this account could also be Freight Out or Transportation...
The combination of direct materials and direct labor.
A bearer bond is a bond that is not registered in its owner’s name. The person holding the bond is presumed to be the owner of the bond. The interest on a bearer bond is received by clipping one of the dated...
Cash received. Receipts are different from revenues.
The average time it takes for a retailer’s or manufacturer’s inventory to turn to cash. If a manufacturer turns its inventory six times per year (every two months) and allows customers to pay in 30 days, its...
Waste, scrap, evaporation, etc. in the manufacturing of products. Normal spoilage is considered unavoidable and is part of the cost of producing the good output. Abnormal spoilage is considered avoidable and is not part...
This could be the difference between cost and the selling price. For example, a retailer may markup its cost by 50% to arrive at a selling price. In the retail method of costing inventory, markup is used to mean the...
See Explanation of Financial Ratios.
An estimate of an asset’s market value
Featured Review
"I want you to know just how much I love AccountingCoach, I use it all the time. I love the puzzles and tests, the information is broken down and extremely easy to understand. It's easy to find answers to specific questions. Finding AccountingCoach was the best thing for me and my employer benefits big time. I missed my opportunity to attend college but with AccountingCoach I have the same knowledge at my fingertips, forever! I can study at my own pace at home or at work. I am a full charge bookkeeper for a multi-million dollar business and occasionally I run into issues where I need help and I get it with AccountingCoach. Even if you have a degree you can't pass this up. No one remembers everything. Forever grateful. Thank you Harold." - Carrie H.
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: