Merchandise that was returned to the seller by a customer. This account is a contra sales account. When merchandise sold on credit is returned, this account is debited and Accounts Receivable is credited.
Merchandise that was returned to the seller by a customer. This account is a contra sales account. When merchandise sold on credit is returned, this account is debited and Accounts Receivable is credited.
Federal Unemployment Tax Act. See federal unemployment tax.
Taking out a loan or issuing bonds in order to acquire an asset or another business.
An income statement account showing the amount of vacation expense earned by employees (by working) during the specified accounting period.
The expensing of an intangible asset from the balance sheet to the income statement.
The recording of a company’s transactions into the accounts contained in the general ledger. It is usually associated with the accounting tasks prior to the preparation of the trial balance. To learn more about...
The term associated with payroll deductions from an employee’s gross wages or gross salary.
A document filed when a corporation is formed. Among other things, it lists the number of shares of stock that the corporation is authorized to issue.
The activities provided by a nonprofit in carrying out one of its major programs.
See inventory: work-in-process (WIP).
Under the accrual basis of accounting this income statement account reports the amount of commissions expense that pertains to the revenues earned by the company during the accounting period shown in the heading of the...
See discounted cash flow model.
The income statement format where the operating and nonoperating revenues are grouped and totaled and the operating and nonoperating expenses are grouped and totaled. Then there is one subtraction of the combined...
The amounts earned on money invested. Often this is interest and dividends earned on a company’s investment in stocks and bonds of other companies.
Free Alongside Ship. Terms indicating that the seller’s price includes delivery of goods at a ship’s pier. Title to the goods will transfer to the buyer alongside the ship.
An asset account in a bank’s general ledger that indicates the amounts owed by borrowers to the bank as of a given date.
Usually a simple form used by the petty cash custodian in order to document small payments from a petty cash box.
Sending merchandise to another party (an agent, consignee) in order to sell the merchandise. Also see consigned goods.
Income or revenue earned by a company that is outside of its main operating activities. For a retailer the interest earned on its temporary investments is a nonoperating revenue (or nonoperating income).
See variable manufacturing overhead spending variance.
A division or department of a business whose managers are responsible for both revenues and expenses.
A retirement plan that specifies the amount that a retiree will receive, such as 1% of the person’s recent salary times the years of service. The employer’s obligation is to contribute enough money to meet...
A person or organization that gives or donates money, property, services, etc.
This is an operating expense resulting from making sales on credit and not collecting the customers’ entire accounts receivable balances.
The accounting or bookkeeping system that does not utilize computer software for entering transactions into journals and ledgers.
A target rate. For example, companies may decide to invest only in projects that generate an internal rate of return that is in excess of 12%. The 12% figure becomes the hurdle rate.
An asset account in a bank’s general ledger that indicates the amount at which the bank is reporting or carrying its investments.
A balance sheet with classifications (groupings or categories) such as current assets, property plant and equipment, current liabilities, long term liabilities, etc. To learn more, see Explanation of Balance Sheet.
A department within a factory that does not directly produce a product. Examples are the factory maintenance department, factory administrative department, and quality assurance department.
An account in the general ledger, such as Cash, Accounts Payable, Sales, Advertising Expense, etc. To learn more, see Explanation of Chart of Accounts.
Usually refers to one of the accounts receivable that was deemed to be uncollectible or worthless and was removed from the general ledger account Accounts Receivable.
This term is usually associated with assets that are depreciated. In the month that an asset is acquired or disposed, it is assumed to have occurred in the middle of the month.
A term that describes the steps when processing transactions (analyzing, journalizing, posting, preparing trial balances, adjusting, preparing financial statements) in a manual accounting system. Today many of the steps...
Also referred to as the fixed overhead spending variance. The difference between the actual fixed overhead incurred and the amount of fixed overhead that had been budgeted.
Bookkeeping Video Training Part 7 Adjusting entries: deferred revenues, accrued revenues, reversing accruals to avoid double-counting Must-Watch Video Learn How to Advance Your Accounting and Bookkeeping Career Perform...
A revenue account in a bank’s general ledger that indicates the amounts earned by the bank by servicing its customers’ accounts at the bank.
Financial Statements Video Training Part 7 Balance sheet: long-term liabilities, stockholders' equity Must-Watch Video Learn How to Advance Your Accounting and Bookkeeping Career Perform better at your current job...
The first major section of the statement of cash flows. To learn more, see Explanation of Cash Flow Statement.
A tax status allowed by the U.S. Internal Revenue Service.
A form used at a bank to inform its customer that the customer’s account is being reduced for a fee or other charge.
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