See paid-in capital in excess of par value – common stock, or paid-in capital in excess of par value – preferred stock.
See paid-in capital in excess of par value – common stock, or paid-in capital in excess of par value – preferred stock.
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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.
The basic general rules upon which more detailed accounting standards are built. To learn more, see Explanation of Accounting Principles.
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...
See deferral-type adjusting entry.
The stockholders’ equity account that reports the par or stated value of the issued shares of common stock. If the common stock does not have a par or stated value, this account will report the amount received when...
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Current assets minus current liabilities. Also see working capital.
Generally, securities that can be sold quickly in the stock or bond market and where the investor’s intention is to sell them within one year of the balance sheet date.
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 current liability account which reflects the amount of income taxes currently due to the federal, state, and local governments.
A word to describe whether a company is able to earn more revenues than expenses.
The amount of temporary staffing costs that were used during the time interval indicated in the heading of the income statement.
An income statement account showing the amount of vacation expense earned by employees (by working) during the specified accounting period.
This organization oversees the Financial Accounting Standards Board (FASB). It selects the members of the FASB and raises funds to assist in paying for its operations.
In cost accounting this term means to allocate, apply, apportion, or spread manufacturing overhead costs to the production output. In terms of accounts receivable, assign means to pledge accounts receivable to a lender...
Dollars of gross profit divided by the dollars of net sales. Also known as gross margin.
A loss that occurs by holding an asset. Holding losses might be recorded on the income statement or they might not be recorded depending on the asset and the amounts.
Federal government securities with a fixed interest rate and maturing in 10 years or less.
Net sales is the gross amount of Sales minus Sales Returns and Allowances, and Sales Discounts for the time interval indicated on the income statement.
The net result of combining the discounted cash inflows and the discounted cash outflows of an investment, project, company, etc.
A top ranking corporation official usually reporting to the chief executive officer and responsible for the operations of the corporation.
A distribution of part of a corporation’s past profits to its stockholders. A dividend is not an expense on the corporation’s income statement.
Also referred to as the useful life. This differs from the physical life of an asset. For example, a computer may have a physical life of 50 years, but its economic or useful life might be five years.
Assets such as Cash, Temporary Investments, and Accounts Receivable.
The mathematical result of sales revenues divided by average total assets during the period of the sales.
This financial statistic is the net income of a corporation after income tax (less any preferred dividends) divided by the weighted average number of shares of common stock outstanding during the same period of time.
A statistical tool that uses the least-squares method to estimate the fixed and variable components of mixed costs.
The actual cost incurred for manufacturing costs other than direct materials and direct labor which increase as production volume increases. Examples include manufacturing supplies and electricity to operate the...
An income statement account at a financial institution used to record and report the amounts earned from fees charged to customers.
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The person or business that receives a loan from a bank or other lender.
See sum-of-the-years’ digits method of depreciation.
A journal entry to correct an erroneous amount previously entered in the general ledger.
Often referred to as fixed assets. This would include long term assets such as buildings and equipment used by a company. Plant assets (other than land) will be depreciated over their useful lives.
A decrease in the value of a long term asset to an amount that is less than the amount shown under the cost principle.
Either a temporary restriction or a permanent restriction imposed by the donor of an asset when it is contributed to a nonprofit organization.
A shortened version of the term bank reconciliation or bank statement reconciliation.
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