The time required to set up a piece of production equipment.
The time required to set up a piece of production equipment.
This current liability account reports the amount a company owes the U.S. government as of the balance sheet date for the federal income taxes withheld from its employees’ salaries and wages.
A company’s income statement which reports each item as a percentage of net sales.
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.
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.
A series of equal amounts occurring at the beginning of each equal time interval. Also known as an annuity in advance. An example would be the monthly rent on an apartment.
Bookkeeping Video Training Part 10 Adjusting entries: recap of accruals, deferrals, one balance sheet account and one income statement account will be affected Must-Watch Video Learn How to Advance Your Accounting and...
A payment toward the amount of principal owed. Generally when a loan payment consists of only a principal and interest payment, the amount owed for interest is processed first and the remaining amount of the payment is...
See direct labor efficiency variance and direct labor rate variance.
Assets other than cash, accounts receivables, and notes receivables. Holders of nonmonetary assets could avoid holding losses during periods of inflation.
Either a temporary restriction or a permanent restriction imposed by the donor of an asset when it is contributed to a nonprofit organization.
See variable manufacturing overhead spending variance.
The amount by which the proceeds from the sale of investments exceeded the carrying amount of the investments that were sold. It is reported as a non-operating or “other” item on a multiple-step income...
The amount of principal due on a formal written promise to pay. Loans from banks are included in this account.
The difference between the call price of a bond or preferred stock and its stated or par value.
The amount received from the sale of an asset, from the issuance of bonds or stock, or from a bank loan.
A bond that is callable by the issuer at a certain price. The price and other conditions are disclosed in the bond’s indenture.
A series of equal amounts occurring at the end of each equal time interval. Also known as an ordinary annuity. An example would be the monthly payments on a loan. Another example is the semiannual interest on a bond.
Total liabilities divided by total assets. This indicates how much of a corporation’s assets are financed by lenders/creditors as opposed to purchased with owners’ or stockholders’ funds. If a high...
The second section of the statement of cash flows. To learn more, see Explanation of Cash Flow Statement.
A phrase that indicates a transaction was between two independent parties and that the resulting amount is a fair representation of the value.
That part of the accounting system which contains the balance sheet and income statement accounts used for recording transactions.
Cash that can be used only for the purpose intended.
An asset account in a bank’s general ledger that indicates the amount at which the bank is reporting or carrying its investments.
Financial statements prepared by an accountant based on the amounts provided by a client. The accountant does not review or audit the amounts provided and therefore does not provide any assurances regarding the validity...
The 500 year-old accounting system where every transaction is recorded into at least two accounts. To learn more, see Explanation of Debits and Credits.
U.S. social security system.
The chief accounting officer of a company. This person would head up the accounting department.
The borrower who provides to a lender an asset as collateral for a loan.
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.
A table showing present value factors for various interest rates and numbers of years/periods for a single amount at a future point in time.
Sometimes used as a heading in place of paid-in capital.
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...
The term used by manufacturers to indicate that its manufacturing overhead applied or assigned to its output is less than the amount actually incurred.
A liability account on the books of a company receiving cash in advance of delivering goods or services to the customer. The entry on the books of the company at the time the money is received in advance is a debit to...
The third section of the statement of cash flows. To learn more, see Explanation of Cash Flow Statement.
The owner of property that often receives rent from tenants.
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 amount of cash that could be received if a whole life insurance policy were canceled.
Statement of Cash Flows. See Explanation of Cash Flow Statement.
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