Our Explanation of Income Statement helps you learn the most important features of a corporation's income statement (also known as the statement of operations or profit and loss statement). We provide more understanding...
Our Explanation of Income Statement helps you learn the most important features of a corporation's income statement (also known as the statement of operations or profit and loss statement). We provide more understanding...
A listing of the general ledger accounts and their account balances at a point in time after the adjusting entries have been posted. The grand total of the accounts with debit balances should equal the grand total of the...
A liability account containing the amount of premium on bonds payable that has not yet been amortized to interest expense. To learn more, see Explanation of Bonds Payable.
A cost flow assumption where the last (recent) costs are assumed to flow out of the asset account first. This means the first (oldest) costs remain on hand. To learn more, see Explanation of Inventory and Cost of Goods...
Amount of depletion charged to expense on the income statement for the period indicated in its heading. The amount is also credited to the contra asset account Accumulated Depletion.
A form used at a bank to inform its customer that the customer’s account is being reduced for a fee or other charge.
A balance on the left side of an account in the general ledger. Typically expenses, losses, and assets have debit balances.
What is a/c? Definition of a/c In accounting, a/c is the abbreviation for account. Example of a/c An accountant might leave the following note for a subordinate: “Please review the balance in the...
A miscellaneous expense account used to record the difference between the amount of cash needed to replenish a petty cash fund and the amount of petty cash receipts at the time the petty cash fund is replenished.
A current asset account which contains the amount of investments that can and will be sold in the near future.
The systematic allocation of the costs incurred to issue bonds (reported in a contra liability account) to Interest Expense over the life of the bonds.
A term used to describe checks written by a company that have been received and paid by the bank on which they were drawn or written. The check number and amount will appear on the company’s checking account...
The amount of principal due on a formal written promise to pay. Loans from banks are included in this account.
A negative balance in the bank’s records for the company’s checking account.
This current liability account reports the amount a company’s employees have earned in holiday pay, vacation pay, and sick days but have not yet taken as of the date of the balance sheet.
On account. Goods purchased with terms of net 10 days, net 30 days, or 2/10, net 30 are goods purchased on credit. Goods sold with similar terms are sales on credit.
This current liability account reports the amount a company owes (must remit) for its employees’ Social Security and Medicare taxes as of the date of the balance sheet.
The amount in a bank account according to the bank’s records.
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.
This term refers to checking account balances. On a bank’s balance sheet, demand deposits are reported as current liabilities.
This current liability account reports the amount a company owes the United Way organization as of the balance sheet date. The amount includes the withholdings from employees’ pay plus the amount owed by the...
An income statement account for expense items that are too insignificant to have their own separate general ledger accounts.
An income statement account showing the amount of vacation expense earned by employees (by working) during the specified accounting period.
An asset account in a bank’s general ledger that indicates the amounts owed by borrowers to the bank as of a given date.
A current asset account that reports the amount of future rent expense that was paid in advance of the rental period. The amount reported on the balance sheet is the amount that has not yet been used or expired as of the...
An asset account used to record a loan to another party that has real estate as collateral.
An income statement account at a financial institution used to record and report the amounts earned from fees charged to customers.
A liability account that reports the amount of taxes that a company owes as of the balance sheet date.
Under the accrual basis of accounting, this account reports the cost of the temporary help services that a company used during the period indicated on its income statement.
This current liability account reports the amount of interest the company owes as of the date of the balance sheet. (Future interest is not recorded as a liability.)
The income statement account which contains a portion of the cost of plant and equipment that is being matched to the time interval shown in the heading of the income statement. (There is no depreciation expense for...
A current asset account that represents an amount of cash for making small disbursements for postage due, supplies, etc.
The balance in a business record such as a general ledger account.
An asset account which reports the carrying amount of a company’s investment in another enterprise.
A current liability account that reports the amounts of cash dividends that have been declared by the board of directors but not yet distributed to the stockholders.
This is a record on an individual job (product, batch) within the job costing system. For items in process this is a subsidiary record to the general ledger account inventory: work-in-process (WIP).
A contra liability account containing the amount of discount on bonds payable that has not yet been amortized to interest expense. To learn more, see Explanation of Bonds Payable.
Sales made on account. Sales where the customer is allowed to pay at a later date. Noncash sales.
This current liability account reports the amount a company owes (is required to remit) for its employees’ 401(k) program as of the date of the balance sheet.
Featured Review
"I currently work as a bookkeeper. I became a PRO user as I had studied a different field in college, but as I moved up in the outsourced accounting firm I worked for, I needed to learn more about accounting. I like the fact that the materials are easy to understand, and that I didn't have to spend a fortune on more college courses. Thanks to AccountingCoach, I've been able to go further in my career, which has led to a better lifestyle." - Rachel M.
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: