The sum of future amounts multiplied by their respective probabilities of occurrence.
The sum of future amounts multiplied by their respective probabilities of occurrence.
See cleared.
The indirect manufacturing costs actually incurred during an accounting period.
Federal Unemployment Tax Act. See federal unemployment tax.
This is the classification shown on a single-step income statement which reports the operating revenues, nonoperating revenues, and gains in one section of the income statement. Revenues and gains enhance the...
The compensation earned by employees who are paid on an hourly basis. It is common for production workers to earn wages, since they are usually paid via an hourly rate.
A legal agreement to pay rent to the lessor for a stated period of time. Sometimes the lease is in substance a purchase of an asset and a financing arrangement. For example, if a company agrees to lease a forklift truck...
See not sufficient funds (NSF) check.
The percentage resulting from dividing the dividends per share by the market price per share.
See contingent loss.
The total of interest and principal payments required to be paid on loans payable.
An employee’s pretax compensation based on hours worked times an hourly rate of pay. Production workers and nonmanagement employees are usually paid wages. To learn more, see Explanation of Payroll Accounting.
A person whose pay is based on an annual amount (instead of being based on an hourly rate of pay multiplied by actual hours worked). For example, the officers of a corporation and the heads of departments within a...
A shortened version of the term bank reconciliation or bank statement reconciliation.
See goods in transit.
Regression analysis with only one independent variable.
What is a dividend and why is it needed? A dividend paid by a corporation is a distribution of profits to the owners of the corporation. The owners of a corporation are known as stockholders or shareholders. (In a sole...
See cost-volume-profit (CVP).
See income statement. To learn more, see Explanation of Income Statement.
A current asset that reports the amount paid for advertising that has not yet taken place. When the advertising occurs the prepaid advertising is reduced and advertising expense is recorded.
The principle that requires a company to match expenses with related revenues in order to report a company’s profitability during a specified time interval. Ideally, the matching is based on a cause and effect...
One component of financial statement analysis. This method involves financial statements reporting amounts for several years. The earliest year presented is designated as the base year and the subsequent years are...
A formal, written promise to pay interest and to repay the principal amount.
See Accounting Principles Board.
A symbol that indicates the total amount of fixed costs during a specified period of time. In the equation of the straight line, y = a + bx, the total amount of fixed costs during the period is represented by...
A corporation’s reported net income and earnings per share for a three-month period.
A graph’s vertical scale that usually indicates the total dollars for the volume or units indicated by the x-axis.
One of the first efforts begun in the 1970s by the Financial Accounting Standards Board to articulate and organize into a cohesive framework all of the accounting rules that had been developed in the past. It was hoped...
More formally known as the Uniform CPA Examination. This rigorous, 14-hour, computer-based exam consists of questions developed by the American Institute of Certified Public Accountants. The exam is in English only and...
The British term for controller.
See sales discounts.
Amounts spent for property, plant and equipment.
Why are accruals needed every month? Reasons for Monthly Accruals Accrual adjusting entries are needed monthly only if a company issues monthly financial statements. Two reasons for the monthly accrual adjusting entries...
See budgetary slack.
Actual changes in cash as opposed to accounting revenues and expenses.
Net income divided by net sales.
What does it mean to check the extensions and to foot an invoice? To check the extensions on a purchase invoice means to verify that the number of units of each item multiplied by its unit cost agrees with the total...
In regression analysis this is a statistic designated as r and ranging from -1 to +1. It indicates the percentage of correlation between the dependent variable and the independent variable(s). When this statistic is...
A report prepared by a professional appraiser with detailed information on the calculation of an asset’s current market value.
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