Questions & Answers (Q&A)

Q&A Archive (1,114)

What is net sales?

Definition of Net Sales Under the accrual basis of accounting, net sales is the total amount of goods shipped/delivered to customers during a specified period of time minus any early payment discounts (if offered by the seller) and minus allowances for goods… Read More.

What is a deferred cost?

A deferred cost is a cost that occurred in a transaction, but will not be expensed until a future accounting period. An example of a deferred cost is the fees necessary to register a new bond issue. A company will likely have… Read More.

What are gross wages?

Definition of Gross Wages Gross wages are the amounts earned by employees before the payroll withholding taxes and other deductions are subtracted. Sometimes gross wages is used to describe the amounts earned by hourly-paid employees. However, it is common for gross wages… Read More.

What is a calendar year?

Definition of Calendar Year A calendar year is the 12 consecutive months from January through December. In other words, it is the 365 days (366 days in a leap year) beginning on January 1 and ending on December 31. Example of Calendar… Read More.

What is an accounting clerk?

Definition of Accounting Clerk An accounting clerk is typically a person with an aptitude for numbers who can process a large volume of details accurately and quickly with a minimal amount of supervision. Today a successful accounting clerk needs to be proficient… Read More.

What is gross pay?

Definition of Gross Pay Gross pay is the amount an employee is paid before the employer withholds FICA (Social Security and Medicare payroll taxes), income taxes (federal, state, local) if applicable, and other amounts such as wage garnishments, insurance payments, union dues,… Read More.

What is a stock split?

Definition of Stock Split A stock split usually refers to a corporation dividing its existing number of shares of common stock into a greater number of shares. For instance, a corporation with 100,000 shares of stock before a 2-for-1 stock split will… Read More.

What is the annual wage limit?

Definition of Annual Wage Limit Annual wage limit is a term in payroll accounting associated with the Social Security payroll tax. The annual wage limit is also known as the annual wage base, wage ceiling, taxable maximum, and maximum taxable earnings. The… Read More.

What is Additional Medicare Tax?

Definition of Additional Medicare Tax The Additional Medicare Tax is one of the U.S. government's payroll withholding taxes that is paid solely by employees and the self-employed. In other words, the employer does not match the Additional Medicare Tax. The Additional Medicare… Read More.

What is an accountant?

Definition of Accountant Accountants are employed by businesses and other organizations to report their financial results according to generally accepted accounting principles (GAAP) and income tax regulations. Hence, accountants are employed by manufacturers, retailers, financial institutions, public utilities, government agencies, accounting firms,… Read More.