See income statement. To learn more, see Explanation of Income Statement.
See income statement. To learn more, see Explanation of Income Statement.
The additional revenues from an additional quantity. It is similar to marginal revenue, except that marginal revenue refers to the revenue from the next unit. Incremental revenue might be the additional revenues from the...
Financial Statements Video Training Part 14 Statement of cash flows: free cash flow; statement of owner's equity Must-Watch Video Learn How to Advance Your Accounting and Bookkeeping Career Perform better at your...
The ratio of current assets to current liabilities. This ratio is an indicator of a company’s ability to meet its current obligations. To learn more, see Explanation of Financial Ratios.
Future cash amounts that have not been discounted to their present value.
A method used by retailers for estimating the cost of ending inventory without tracking the individual units of product.
This current liability account reports the amount a company must remit to a court or other agencies for amounts withheld from its employees’ salaries and wages.
A mathematical technique that determines the best-fitting line through a series of points. This is used in regression analysis.
A designation awarded by one of 50 U.S. states or five jurisdictions to a college graduate who has passed the rigorous Uniform CPA Exam and has met the required work experience. See Accounting Careers.
The Roman numeral that represents 1000. Other symbols that are sometimes used to represent 1000 include k and m. (Note: Sometimes M is also used to indicate million.)
A cash dividend that has been declared by the board of directors, but not yet paid.
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 allocation of one year’s income tax expense to the various sections of the income statement. For example, extraordinary items must be reported after income tax on the income statement, while operating revenues...
A Latin term that means in proportion. See prorate.
Financial ratios such as current ratio, quick ratio, receivables turnover ratio, and inventory turnover ratio. To learn more, see Explanation of Financial Ratios
A liability account that reports the amount a company owes as of the date of the balance sheet for the company’s pension plan. Information on pensions can be found in an Intermediate Accounting textbook.
Under the accrual basis of accounting, this account reports the cost of the temporary help services that a company used during the period indicated on its income statement.
The indirect manufacturing costs actually incurred during an accounting period.
See direct materials usage variance.
A weighted average cost used with the periodic inventory system. To learn more, see Explanation of Inventory and Cost of Goods Sold.
Support that has been either temporarily or permanently restricted by the donor.
A loss from holding an asset and the loss has not yet been reported in the financial statements.
Also referred to as manufacturing overhead, indirect manufacturing costs, factory burden, and manufacturing support costs. To learn more, see Explanation of Manufacturing Overhead.
Buildings is a noncurrent or long-term asset account which shows the cost of a building (excluding the cost of the land). Buildings will be depreciated over their useful lives by debiting the income statement account...
A person who is considered to be both the employer and the employee. For example, the sole owner of a sole proprietorship is self-employed.
Life insurance with a cash value (as opposed to term insurance, which does not have a cash value).
An asset account which reports the carrying amount of a company’s investment in another enterprise.
Cash that can be used only for the purpose intended.
A publication by the U.S. Internal Revenue Service (IRS) to assist employers with federal payroll taxes. The complete title of the publication is Publication 15 (Circular E), Employer’s Tax Guide. It is available...
See sum of the years’ digits method of depreciation.
A balance sheet which is a projection of the amounts at a future date. It should be based on the projected, budgeted transactions.
A term used to describe checks written by a company that have been received and paid by the bank on which they were drawn or written. The check number and amount will appear on the company’s checking account...
A non-operating item resulting from the sale of this long-term asset for less than its carrying amount (or book value).
The estimated volume in a future period that will be used for allocating indirect manufacturing costs.
A special or specialized journal to record sales of merchandise to customers. In a manual system this saves a significant amount of recording time. In today’s computerized environment, sales are recorded...
An income statement account for expense items that are too insignificant to have their own separate general ledger accounts.
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.
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.
The first major section of the statement of cash flows. To learn more, see Explanation of Cash Flow Statement.
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