The phrase used by FASB Statement 117 that describes the required focus of a nonprofit’s external financial statements. Previously the external financial statements focused on individual funds.
The phrase used by FASB Statement 117 that describes the required focus of a nonprofit’s external financial statements. Previously the external financial statements focused on individual funds.
A series of equal amounts occurring at the end of each equal time interval. Also known as an annuity in arrears. An example is the monthly payments on a loan. Another example is the semiannual interest on a bond.
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.
An interest rate that is not explicitly stated. For example, instead of paying $100 cash a person is allowed to pay $9 per month for 12 months. The interest rate is not stated, but the implicit rate can be determined by...
The statistic known as the coefficient of correlation. The range of this statistic is -1 to +1. When this statistic is squared the result is the percentage change in the dependent variable y that is explained by the...
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.
Generally a long term liability account containing the face amount, par amount, or maturity amount of the bonds issued by a company that are outstanding as of the balance sheet date. To learn more about bonds payable,...
A listing of the materials included in a product. A bill of material could be thought of as a bakery’s recipe for producing one of its products.
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 phrase that indicates a transaction was between two independent parties and that the resulting amount is a fair representation of the value.
One of the main financial statements of a nonprofit organization. This financial statement reports the amounts of assets, liabilities, and net assets as of a specified date. This financial statement is similar to the...
The second section of the statement of cash flows. To learn more, see Explanation of Cash Flow Statement.
See Public Company Accounting Oversight Board (PCAOB).
A loan in which the interest rate does not change over the life of the loan.
Analyzing financial statements by using financial ratios, horizontal analysis, and vertical analysis. To learn more, see Explanation of Financial Ratios.
A decentralized division of a corporation which is responsible for and has control over its costs, revenues, and investments.
The formal planning for significant expenditures, such as property, plant and equipment.
A loan from a bank or other lender for which the borrower is not required to pledge assets as collateral for the loan.
See Explanation of Inventory and Cost of Goods Sold.
The activities provided by a nonprofit in carrying out one of its major programs.
An asset account in a bank’s general ledger that indicates the amount at which the bank is reporting or carrying its investments.
A term used in break-even analysis to indicate the amount of sales that are above the break-even point. In other words, the margin of safety is the amount by which a company’s sales could decrease before the...
The difference in total revenues between alternative actions or plans.
See paid-in capital in excess of par value – common stock, or paid-in capital in excess of par value – preferred stock.
A bond (long-term debt) that is secured by a lien on real estate.
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 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 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.
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.
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