See separation of duties.
See separation of duties.
A predetermined dollar amount that one unit of a finished product should cost during an accounting period.
Financial statements that bear the report of independent auditors attesting to the financial statements’ fairness and compliance with generally accepted accounting principles.
A past, historical cost. They are called sunk because a past cost cannot be changed and decisions involve only the present and the future.
See sales.
An estimated income statement for a future period of time that is based on projected or budgeted transactions.
Journals other than the general journal. Special or specialized journals include the cash receipts journal, the cash disbursements journal, the purchases journal, and the sales journal.
Also referred to as a shareholder. The owner of shares of stock in a corporation. Every corporation has common stock and those owners are known as common stockholders. Some corporations also issued preferred stock and...
The sales invoice or bill issued by a vendor and received by the buyer. The customer will also refer to the supplier invoice as the vendor invoice.
See bank reconciliation.
Usually financial statements refer to the balance sheet, income statement, statement of cash flows, statement of retained earnings, and statement of stockholders’ equity. The balance sheet reports information as of...
The financial statements of nonprofits include the statement of financial position, the statement of activities, the statement of cash flows, notes to the financial statements, and the statement of functional expenses....
The estimated scrap value at the end of the useful life of an asset used in the business. It is also referred to as residual value.
The provider of goods or services. Also known as the vendor.
Statement of Cash Flows. See Explanation of Cash Flow Statement.
See bond sinking fund.
A selling expense account shown on the income statement in order to match this expense to the related sales.
Financial statements based upon various assumptions.
The point at which several products emerge from a common process.
See Explanation of Standard Costing.
This current liability account reports the amount a company owes the state governments as of the balance sheet date for the state income taxes withheld from its employees’ salaries and wages.
Merchandise that was returned to the seller by a customer. This account is a contra sales account. When merchandise sold on credit is returned, this account is debited and Accounts Receivable is credited.
See current asset.
Another company that supplies goods or performs services. Also known as a vendor.
The discounted value of a single future amount. To learn more, see our Present Value of a Single Amount Outline.
A non-operating item resulting from the sale of this long-term asset for less than its carrying amount (or book value).
This is the sum of the beginning inventory of merchandise plus the net cost of the merchandise purchased including freight-in.
See production service department.
See mixed expenses.
See exchange of similar nonmonetary assets.
A bond issued with a series (or staggering) of maturity dates.
See post balance sheet event.
The net amount of gross sales on credit minus the sales returns, sales allowances, and sales discounts which pertain to the sales on credit.
The time required to set up a piece of production equipment.
This term is associated with preferred stock that does not allow its holders to receive more than its stated dividend. The nonparticipating feature is typical in preferred stock. To learn more about preferred stock, see...
The total of interest and principal payments required to be paid on loans payable.
An income statement that subtracts all variable costs and expenses from revenues in order to show the contribution margin. From that is subtracted the fixed costs and expenses to arrive at net income. To learn more, see...
A phrase used in depreciation and amortization to indicate that the expense is being allocated on a logical basis (because a cause and effect relationship does not exist).
A predetermined dollar amount that a pound of material or an hour of labor should cost during an accounting period.
A non-operating item resulting from the sale of this long-term asset for less than its carrying amount (or book value).
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