The shipping cost to be paid by the buyer of merchandise purchased when the terms are FOB shipping point. Freight-in is considered to be part of the cost of the merchandise and should be included in inventory if the...
The shipping cost to be paid by the buyer of merchandise purchased when the terms are FOB shipping point. Freight-in is considered to be part of the cost of the merchandise and should be included in inventory if the...
A revenue, expense, gain, or loss account. To learn more, see Explanation of Income Statement.
Financial Statements Video Training Part 12 Statement of cash flows: introduction, cash flows from operating activities Must-Watch Video Learn How to Advance Your Accounting and Bookkeeping Career Perform better at your...
The most common method of preparing the statement of cash flows. Under this method the starting point is the net income reported on the income statement. To learn more, see Explanation of Cash Flow Statement.
An official pronouncement by the Financial Accounting Standards Board that involves a previously issued FASB Standard. FASB Interpretations are part of the generally accepted accounting principles.
See direct materials usage variance.
Financial Statements Video Training Part 5 Balance sheet: asset classifications (intangible assets, other assets) Must-Watch Video Learn How to Advance Your Accounting and Bookkeeping Career Perform better at your...
A stockholders’ equity account that generally reports the net income of a corporation from its inception until the balance sheet date less the dividends declared from its inception to the date of the balance...
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See current portion of long-term debt.
See direct labor efficiency variance and variable manufacturing overhead efficiency variance.
The amount paid or contributed by stockholders in exchange for shares of a corporation’s stock.
The increase in a carrying amount. Also see write-up work.
Manufactured products that are often expressed in units, machine hours, etc.
A term used in evaluating business investments. It represents the targeted rate that a company needs to earn. It is also referred to as the discount rate, because this rate is used to discount the future cash flows to...
Revenue that has been earned but not yet invoiced to the customer.
Bookkeeping Video Training Part 1 Accounts: record each transaction in two accounts, debits = credits, T-accounts, amounts reported on financial statements Must-Watch Video Learn How to Advance Your Accounting and...
The amount in a bank account according to the bank’s records.
A loan having the security of a lien on the borrower’s real estate.
Same as the Days Sales in Accounts Receivable
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...
Inventory that is less than the expected amount. It might be associated with theft or damage.
The amount by which the proceeds from the sale of an automobile used in the business exceeded its carrying amount at the time it is sold.
The gross purchases of merchandise for resale minus purchase returns, purchase allowances, and purchase discounts.
The actual cost incurred for manufacturing costs that does not change as production volume changes. Examples include the property tax, rent, and depreciation of the factory building and equipment, and the salaries of the...
Federal government securities with a fixed interest rate and maturing in more than 10 years.
Recording an entry in an account in the general ledger or in a subsidiary ledger.
Regression analysis with only one independent variable.
A financial ratio that expresses the income statement effect from employing an asset as a percentage of the asset’s cost on the balance sheet.
A liability account that reports the amount of taxes that a company owes as of the balance sheet date.
An internal accounting report that is prepared prior to recording the adjusting entries. Its purpose is to verify that the total amount of debit balances in the general ledger accounts is equal to the total amount of...
A check bearing a date in the future. The company receiving such a check should not report the check as cash until the date of the check.
A term used when referring to property, plant, and equipment. Fixed assets other than land are depreciated.
The amount that a bank commits to lend a borrower during a specified purpose.
A payment. The expenditure might be for a significant long term asset (capital expenditure), a short term asset (prepaid insurance), a reduction in a liability, or for an immediate expense such as rent.
In securities, a party that assists a company in issuing stock or bonds.
The collection of money (currency, coins, checks). Not to be confused with revenues.
To report a revenue or expense that has occurred, but has not yet been entered in the accounting records as of the end of the accounting period. To learn more, see Explanation of Adjusting Entries.
The amount by which the proceeds from the sale of equipment (that had been used in the business) exceeded its carrying amount at the time it is sold.
A mathematical tool to optimize profits (contribution margin) given a limited amount of inputs and other constraints.
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