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.
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.
A visual aid used by accountants to illustrate a journal entry’s effect on the general ledger accounts. Debit amounts are entered on the left side of the “T” and credit amounts are entered on the right...
Preferred stock that can be exchanged by the holder for a specified number of shares of common stock of the same company.
The part of a balance sheet with the heading stockholders’ equity or owner’s equity. The total amount of this section is the amount of reported assets minus the amount of reported liabilities.
Receivables other than Accounts Receivable. Examples include amounts due from employees and income tax refunds receivable.
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 direct labor efficiency variance.
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.
The United States Internal Revenue Code which contains the federal laws and regulations pertaining to federal taxes.
A graph’s vertical scale that usually indicates the total dollars for the volume or units indicated by the x-axis.
In some countries turnover refers to sales. Turnover is also associated with some financial ratios such as the inventory turnover ratio, the accounts receivable turnover ratio, and asset turnover ratio.
The result of the sale of an asset for less than its carrying amount; the write-down of assets; the net result of expenses exceeding revenues.
A term used to describe the net present value method and the internal rate of return. The model discounts future cash flows back to the present time.
Usually a bank, finance company, or person that makes a loan to another party, who is referred to as the borrower.
Checks received from customers and others that are not yet deposited into a bank account. Undeposited checks which are not postdated are reported as part of a company’s cash.
This term is used in place of retained earnings when the balance in the retained earnings account is negative (a debit balance).
A term meaning behind, such as dividends in arrears, or something occurring at the end of a period, such as the recurring payment in an annuity in arrears.
A term often used when referring to office workers, managers, professionals, and executives. These employees’ pay is often stated as a salary for a month (and not as an hourly pay rate).
Bonds with one maturity date (as opposed to serial bond).
In accounting this is the rate used to discount future cash flows in order to determine their present value.
To receive money in exchange for a promise to repay the amount to the lender.
Financial statements (such as the income statement and balance sheet) that summarize much of the detail into a few major lines of information.
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.
Financial statements based upon various assumptions.
Financial Statements Video Training Part 4 Balance sheet: property, plant and equipment (accumulated depreciation, book value) Must-Watch Video Learn How to Advance Your Accounting and Bookkeeping Career Perform better...
A mathematical tool to optimize profits (contribution margin) given a limited amount of inputs and other constraints.
A form of business entity having partners. (Consult with an attorney about this form of entity versus alternatives.)
Also known as the acid test ratio. This ratio compares the amount of cash + marketable securities + accounts receivable to the amount of current liabilities. To learn more, see Explanation of Financial Ratios.
Also referred to as operating expenses. These expenses are reported in the period in which they were incurred, not the period in which they were paid.
See direct materials usage variance. To learn more, see Explanation of Standard Costing.
Usually a change in the estimated useful life of an asset or a change in the estimated salvage value. The change usually causes a change in the depreciation expense for the current year and subsequent years. The...
Manufacturing costs other than direct materials and direct labor. To learn more about manufacturing overhead, see our Manufacturing Overhead Outline.
Under accrual accounting it is the rent earned during the period indicated in the heading of the income statement, regardless of when the money is received from the tenant.
In accounting this term means a company’s net income, which is the bottom line of the income statement.
The exchange or trade-in of a long-term asset for a similar long-term asset. For example, trading the old delivery truck for a new delivery truck; trading a two-family rental unit toward an eight-family rental unit.
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