Difference between revisions of "Net income"

From CNM Wiki
Jump to: navigation, search
Line 1: Line 1:
−
[[Bond certificate]] is a piece of paper held by a bondholder showing evidence of a bond issued by a corporation to be payable on a specified date for a specific sum to the order of the person named in the bond certificate or to the bearer.
 
−
 
−
 
−
==Definitions==
 
−
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 
−
:[[Bond certificate]]. A piece of paper held by a bondholder showing evidence of a bond issued by a corporation to be payable on a specified date for a specific sum to the order of the person named in the bond certificate or to the bearer.
 
−
 
−
==Related concepts==
 
−
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]].
 
−
 
−
==Related coursework==
 
−
*[[Corporate Accounting]].
 
−
 
−
[[Category: Accounting]][[Category: Articles]]
 
−
 
−
[[Face value]] is the amount the corporation must repay to the bondholder at the maturity date.
 
−
 
−
 
−
==Definitions==
 
−
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 
−
:[[Face value]]. The amount the corporation must repay to the bondholder at the maturity date.
 
−
 
−
==Related concepts==
 
−
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]].
 
−
 
−
==Related coursework==
 
−
*[[Corporate Accounting]].
 
−
 
−
[[Category: Accounting]][[Category: Articles]]
 
−
 
−
[[Contract rate]] is rate of interest (based on face value) stated on bond certificate and bond indenture.
 
−
 
−
 
−
==Definitions==
 
−
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 
−
:[[Contract rate]]. Rate of interest (based on face value) stated on bond certificate and bond indenture.
 
−
 
−
==Related concepts==
 
−
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]].
 
−
 
−
==Related coursework==
 
−
*[[Corporate Accounting]].
 
−
 
−
[[Category: Accounting]][[Category: Articles]]
 
−
 
−
[[Bond indenture]] is a contract that spells out the provisions of the contract between the corporation and bondholder.
 
−
 
−
 
−
==Definitions==
 
−
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 
−
:[[Bond indenture]]. A contract that spells out the provisions of the contract between the corporation and bondholder.
 
−
 
−
==Related concepts==
 
−
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]].
 
−
 
−
==Related coursework==
 
−
*[[Corporate Accounting]].
 
−
 
−
[[Category: Accounting]][[Category: Articles]]
 
−
 
−
[[Trustee]] is an organization (usually a bank) or person who monitors a bond indenture for the protection of bondholders.
 
−
 
−
 
−
==Definitions==
 
−
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 
−
:[[Trustee]]. Organization (usually a bank) or person who monitors a bond indenture for the protection of bondholders.
 
−
 
−
==Related concepts==
 
−
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]].
 
−
 
−
==Related coursework==
 
−
*[[Corporate Accounting]].
 
−
 
−
[[Category: Accounting]][[Category: Articles]]
 
−
 
−
[[Secured bond]] is bond issued by a corporation that pledges specific assets as security to meet the terms of the bond agreement.
 
−
 
−
 
−
==Definitions==
 
−
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 
−
:[[Secured bond]]. Bond issued by a corporation that pledges specific assets as security to meet the terms of the bond agreement.
 
−
 
−
==Related concepts==
 
−
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]].
 
−
 
−
==Related coursework==
 
−
*[[Corporate Accounting]].
 
−
 
−
[[Category: Accounting]][[Category: Articles]]
 
−
 
−
[[Debenture bond]] is bond that is unsecured and is issued only on the general credit of a corporation.
 
−
 
−
 
−
==Definitions==
 
−
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 
−
:[[Debenture bond]]. Bond that is unsecured and is issued only on the general credit of a corporation.
 
−
 
−
==Related concepts==
 
−
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]].
 
−
 
−
==Related coursework==
 
−
*[[Corporate Accounting]].
 
−
 
−
[[Category: Accounting]][[Category: Articles]]
 
−
 
−
[[Serial bond]] is bond issued in a series, each one of which has a different maturity date and thus comes due at a different time.
 
−
 
−
 
−
==Definitions==
 
−
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 
−
:[[Serial bond]]. Bond issued in a series, each one of which has a different maturity date and thus comes due at a different time.
 
−
 
−
==Related concepts==
 
−
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]].
 
−
 
−
==Related coursework==
 
−
*[[Corporate Accounting]].
 
−
 
−
[[Category: Accounting]][[Category: Articles]]
 
−
 
−
[[Registered bond]] is bondholders of record are registered with the corporation, and interest checks are sent directly to them.
 
−
 
−
 
−
==Definitions==
 
−
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 
−
:[[Registered bond]]. Bondholders of record are registered with the corporation, and interest checks are sent directly to them.
 
−
 
−
==Related concepts==
 
−
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]].
 
−
 
−
==Related coursework==
 
−
*[[Corporate Accounting]].
 
−
 
−
[[Category: Accounting]][[Category: Articles]]
 
−
 
−
[[Callable bond]] is bond with a provision that it can be called in by the issuing corporation after a certain date.
 
−
 
−
 
−
==Definitions==
 
−
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 
−
:[[Callable bond]]. Bond with a provision that it can be called in by the issuing corporation after a certain date.
 
−
 
−
==Related concepts==
 
−
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]].
 
−
 
−
==Related coursework==
 
−
*[[Corporate Accounting]].
 
−
 
−
[[Category: Accounting]][[Category: Articles]]
 
−
 
−
[[Convertible bond]] is bondholders have the option of converting bonds into stock at a specified exchange rate.
 
−
 
−
 
−
==Definitions==
 
−
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 
−
:[[Convertible bond]]. Bondholders have the option of converting bonds into stock at a specified exchange rate.
 
−
 
−
==Related concepts==
 
−
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]].
 
−
 
−
==Related coursework==
 
−
*[[Corporate Accounting]].
 
−
 
−
[[Category: Accounting]][[Category: Articles]]
 
−
 
−
[[Effective rate]] is the real or actual rate of interest to the borrowing corporation.
 
−
 
−
 
−
==Definitions==
 
−
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 
−
:[[Effective rate]]. The real or actual rate of interest to the borrowing corporation.
 
−
 
−
==Related concepts==
 
−
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]].
 
−
 
−
==Related coursework==
 
−
*[[Corporate Accounting]].
 
−
 
−
[[Category: Accounting]][[Category: Articles]]
 
−
 
−
[[Carrying value]] ([[book value]]) is [[face value]] of bond less bond discount or plus bond premium.
 
−
 
−
 
−
==Definitions==
 
−
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 
−
:[[Carrying value]] ([[book value]]). [[Face value]] of bond less bond discount or plus bond premium.
 
−
 
−
==Related concepts==
 
−
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]].
 
−
 
−
==Related coursework==
 
−
*[[Corporate Accounting]].
 
−
 
−
[[Category: Accounting]][[Category: Articles]]
 
−
 
−
[[Discount on Bonds Payable]] is the account used when bonds are issued below face value; indicates market rate of interest is higher than contract rate. This account is a contra-liability account.
 
−
 
−
 
−
==Definitions==
 
−
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 
−
:[[Discount on Bonds Payable]]. Account used when bonds are issued below face value; indicates market rate of interest is higher than contract rate. This account is a contra-liability account.
 
−
 
−
==Related concepts==
 
−
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]].
 
−
 
−
==Related coursework==
 
−
*[[Corporate Accounting]].
 
−
 
−
[[Category: Accounting]][[Category: Articles]]
 
−
 
−
[[Amortization of discount on Bonds Payable]] ([[amortization of premium on Bonds Payable]]) is writing off the bond premium or discount as a decrease or increase to interest expense for each interest period.
 
−
 
−
 
−
==Definitions==
 
−
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 
−
:[[Amortization of discount on Bonds Payable]] ([[amortization of premium on Bonds Payable]]). Writing off the bond premium or discount as a decrease or increase to interest expense for each interest period.
 
−
 
−
==Related concepts==
 
−
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]].
 
−
 
−
==Related coursework==
 
−
*[[Corporate Accounting]].
 
−
 
−
[[Category: Accounting]][[Category: Articles]]
 
−
 
−
[[Straight-line method]] is a method recognizing equal amounts of interest expense for each period when amortizing a bond discount or premium.
 
−
 
−
 
−
==Definitions==
 
−
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 
−
:[[Straight-line method]]. A method recognizing equal amounts of interest expense for each period when amortizing a bond discount or premium.
 
−
 
−
==Related concepts==
 
−
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]].
 
−
 
−
==Related coursework==
 
−
*[[Corporate Accounting]].
 
−
 
−
[[Category: Accounting]][[Category: Articles]]
 
−
 
−
[[Premium on Bonds Payable]] is the account used when bonds are issued above face value; it indicates that market interest rate is below contract rate. This account is a liability account.
 
−
 
−
 
−
==Definitions==
 
−
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 
−
:[[Premium on Bonds Payable]]. Account used when bonds are issued above face value; it indicates that market interest rate is below contract rate. This account is a liability account.
 
−
 
−
==Related concepts==
 
−
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]].
 
−
 
−
==Related coursework==
 
−
*[[Corporate Accounting]].
 
−
 
−
[[Category: Accounting]][[Category: Articles]]
 
−
 
−
[[Interest method of amortization]]. The method that amortizes the premium or discount to record interest expense, being equal to the carrying value of the bond times the market rate times the time period. The interest expense is a constant percentage of the carrying value. The discount or premium to be amortized is the difference between the interest to be recorded and the interest paid to bondholders.
 
−
 
−
 
−
==Definitions==
 
−
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 
−
:[[Interest method of amortization]]. This method amortizes the premium or discount to record interest expense, being equal to the carrying value of the bond times the market rate times the time period. The interest expense is a constant percentage of the carrying value. The discount or premium to be amortized is the difference between the interest to be recorded and the interest paid to bondholders.
 
−
 
−
==Related concepts==
 
−
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]].
 
−
 
−
==Related coursework==
 
−
*[[Corporate Accounting]].
 
−
 
−
[[Category: Accounting]][[Category: Articles]]
 
−
 
−
[[Sinking fund]] is a fund that accumulates cash to pay off bonds when they are retired.
 
−
 
−
 
−
==Definitions==
 
−
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 
−
:[[Sinking fund]]. A fund that accumulates cash to pay off bonds when they are retired.
 
−
 
−
==Related concepts==
 
−
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]].
 
−
 
−
==Related coursework==
 
−
*[[Corporate Accounting]].
 
−
 
−
[[Category: Accounting]][[Category: Articles]]
 
−
 
−
[[Bond Sinking Fund Interest Earned]] is other revenue account used to record earnings on sinking fund balance.
 
−
 
−
 
−
==Definitions==
 
−
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 
−
:[[Bond Sinking Fund Interest Earned]]. Other revenue account used to record earnings on sinking fund balance.
 
−
 
−
==Related concepts==
 
−
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]].
 
−
 
−
==Related coursework==
 
−
*[[Corporate Accounting]].
 
−
 
−
[[Category: Accounting]][[Category: Articles]]
 
−
 
−
[[Fair Labor Standards Act]] ([[Federal Wage and Hour Law]]) is a [[United States]] law that the majority of American employers must follow that contains rules stating the minimum hourly rate of pay and the maximum number of hours a worker will work before being paid time and a half for overtime hours worked. This law also has other rules and regulations that employers must follow for payroll purposes.
 
−
 
−
 
−
==Definitions==
 
−
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 
−
:[[Fair Labor Standards Act]] ([[Federal Wage and Hour Law]]). A [[United States]] law that the majority of American employers must follow that contains rules stating the minimum hourly rate of pay and the maximum number of hours a worker will work before being paid time and a half for overtime hours worked. This law also has other rules and regulations that employers must follow for payroll purposes.
 
−
 
−
==Related concepts==
 
−
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]].
 
−
 
−
==Related coursework==
 
−
*[[American Accounting]].
 
−
 
−
[[Category: Accounting]][[Category: Articles]]
 
−
 
−
[[Interstate commerce]] is a test that is applied to determine whether an employer must follow the rules of the [[Fair Labor Standards Act]]. If an employer communicates or does business with another business in some other state, it is usually considered to be involved in [[interstate commerce]].
 
−
 
−
 
−
==Definitions==
 
−
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 
−
:[[Interstate commerce]]. A test that is applied to determine whether an employer must follow the rules of the [[Fair Labor Standards Act]]. If an employer communicates or does business with another business in some other state, it is usually considered to be involved in [[interstate commerce]].
 
−
 
−
==Related concepts==
 
−
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]].
 
−
 
−
==Related coursework==
 
−
*[[American Accounting]].
 
−
 
−
[[Category: Accounting]][[Category: Articles]]
 
−
 
−
[[Form W-4]] ([[Employee's Withholding Allowance Certificate]]) is a form filled out by employees and used by employers to supply needed information about the number of allowances claimed, marital status, and so forth. The form is used for payroll purposes to determine federal income tax withholding from an employee's paycheck.
 
−
 
−
 
−
==Definitions==
 
−
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 
−
:[[Form W-4]] ([[Employee's Withholding Allowance Certificate]]). A form filled out by employees and used by employers to supply needed information about the number of allowances claimed, marital status, and so forth. The form is used for payroll purposes to determine federal income tax withholding from an employee's paycheck.
 
−
 
−
==Related concepts==
 
−
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]].
 
−
 
−
==Related coursework==
 
−
*[[American Accounting]].
 
−
 
−
[[Category: Accounting]][[Category: Articles]]
 
−
 
−
[[Federal income tax withholding]] ([[FIT withholding]]) is amount of federal income tax withheld by the employer from the employee's gross pay; the amount withheld is determined by the employee's gross pay, the pay period, the number of allowances claimed by the employee on the [[Form W-4|W-4 form]], and the marital status indicated on the [[Form W-4|W-4 form]].
 
−
 
−
 
−
==Definitions==
 
−
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 
−
:[[Federal income tax withholding]] ([[FIT withholding]]). Amount of federal income tax withheld by the employer from the employee's gross pay; the amount withheld is determined by the employee's gross pay, the pay period, the number of allowances claimed by the employee on the [[Form W-4|W-4 form]], and the marital status indicated on the [[Form W-4|W-4 form]].
 
−
 
−
==Related concepts==
 
−
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]].
 
−
 
−
==Related coursework==
 
−
*[[American Accounting]].
 
−
 
−
[[Category: Accounting]][[Category: Articles]]
 
−
 
−
[[Allowances]] (also known as [[exemptions]]) are certain dollar amounts of a person's income tax that will be considered nontaxable for income tax withholding purposes.
 
−
 
−
==Definitions==
 
−
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 
−
:[[Allowances]] (also known as [[exemptions]]). Certain dollar amounts of a person's income tax that will be considered nontaxable for income tax withholding purposes.
 
−
 
−
==Related concepts==
 
−
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]].
 
−
 
−
==Related coursework==
 
−
*[[American Accounting]].
 
−
 
−
[[Category: Accounting]][[Category: Articles]]
 
−
 
−
[[Wage bracket table]] is one of various charts in [[IRS Circular E]] that provide information about deductions for federal income tax based on earnings and data supplied on the W-4 form.
 
−
 
−
 
−
==Definitions==
 
−
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 
−
:[[Wage bracket table]]. One of various charts in [[IRS Circular E]] that provide information about deductions for federal income tax based on earnings and data supplied on the W-4 form.
 
−
 
−
==Related concepts==
 
−
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]].
 
−
 
−
==Related coursework==
 
−
*[[American Accounting]].
 
−
 
−
[[Category: Accounting]][[Category: Articles]]
 
−
 
−
[[IRS Circular E]] ([[Circular E]]) is an IRS tax publication of payroll procedures, including tax tables.
 
−
 
−
 
−
==Definitions==
 
−
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 
−
:[[IRS Circular E]] ([[Circular E]]). An IRS tax publication of payroll procedures, including tax tables.
 
−
 
−
==Related concepts==
 
−
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]].
 
−
 
−
==Related coursework==
 
−
*[[American Accounting]].
 
−
 
−
[[Category: Accounting]][[Category: Articles]]
 
−
 
−
[[State income tax withholding]] is amount of state income tax withheld by the employer from the employee's gross pay.
 
−
 
−
 
−
==Definitions==
 
−
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 
−
:[[State income tax withholding]]. Amount of state income tax withheld by the employer from the employee's gross pay.
 
−
 
−
==Related concepts==
 
−
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]].
 
−
 
−
==Related coursework==
 
−
*[[American Accounting]].
 
−
 
−
[[Category: Accounting]][[Category: Articles]]
 
−
 
−
[[FICA]] ([[Federal Insurance Contributions Act]]) is part of the Social Security Act of 1935, this law taxes both the employer and employee up to a certain maximum rate and wage base for OASDI tax purposes. It also taxes both the employer and employee for Medicare purposes, but this tax has no wage base maximum.
 
−
 
−
 
−
==Definitions==
 
−
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 
−
:[[FICA]] ([[Federal Insurance Contributions Act]]). Part of the Social Security Act of 1935, this law taxes both the employer and employee up to a certain maximum rate and wage base for OASDI tax purposes. It also taxes both the employer and employee for Medicare purposes, but this tax has no wage base maximum.
 
−
 
−
==Related concepts==
 
−
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]].
 
−
 
−
==Related coursework==
 
−
*[[American Accounting]].
 
−
 
−
[[Category: Accounting]][[Category: Articles]]
 
−
 
−
[[Taxable earnings]] is a numerical value that shows amount of earnings subject to a tax. The tax itself is not shown.
 
−
 
−
 
−
==Definitions==
 
−
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 
−
:[[Taxable earnings]]. A numerical value that shows amount of earnings subject to a tax. The tax itself is not shown.
 
−
 
−
==Related concepts==
 
−
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]].
 
−
 
−
==Related coursework==
 
−
*[[American Accounting]].
 
−
 
−
[[Category: Accounting]][[Category: Articles]]
 
−
 
−
[[Medical insurance]] is health care insurance for which premiums may be paid through a deduction from an employee's paycheck.
 
−
 
−
==Definitions==
 
−
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 
−
:[[Medical insurance]]. Health care insurance for which premiums may be paid through a deduction from an employee's paycheck.
 
−
 
−
==Related concepts==
 
−
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]].
 
−
 
−
==Related coursework==
 
−
*[[American Accounting]].
 
−
 
−
[[Category: Accounting]][[Category: Articles]]
 
−
 
−
[[Federal Unemployment Tax Act]] ([[FUTA]]) is a tax paid by employers to the federal government. The current rate is 0.6% on the first $7,000 of earnings of each employee after the normal FUTA tax credit is applied.
 
−
 
−
 
−
==Definitions==
 
−
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 
−
:[[Federal Unemployment Tax Act]] ([[FUTA]]).  A tax paid by employers to the federal government. The current rate is 0.6% on the first $7,000 of earnings of each employee after the normal FUTA tax credit is applied.
 
−
 
−
==Related concepts==
 
−
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]].
 
−
 
−
==Related coursework==
 
−
*[[American Accounting]].
 
−
 
−
[[Category: Accounting]][[Category: Articles]]
 
−
 
 
[[State Unemployment Tax Act]] ([[SUTA]]) is a tax usually paid only by employers to the state for employee unemployment insurance.
 
[[State Unemployment Tax Act]] ([[SUTA]]) is a tax usually paid only by employers to the state for employee unemployment insurance.
  

Revision as of 19:58, 20 December 2018

State Unemployment Tax Act (SUTA) is a tax usually paid only by employers to the state for employee unemployment insurance.


Contents

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

State Unemployment Tax Act (SUTA). A tax usually paid only by employers to the state for employee unemployment insurance.

Related concepts

Related coursework

Workers' compensation insurance is insurance purchased by most employers to protect their employees against losses due to injury or death while on the job.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Workers' compensation insurance. Insurance purchased by most employers to protect their employees against losses due to injury or death while on the job.

Related concepts

Related coursework

Payroll tax expense is the cost to employers that includes the total of the employer's FICA OASDI, FICA Medicare, FUTA, and SUTA taxes. Remember, the employer matches the employee contributions for OASDI and Medicare.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Payroll tax expense. The cost to employers that includes the total of the employer's FICA OASDI, FICA Medicare, FUTA, and SUTA taxes. Remember, the employer matches the employee contributions for OASDI and Medicare.

Related concepts

Related coursework

Employer identification number (EIN) is a number assigned by the IRS that is used by an employer when recording and paying payroll and income taxes.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Employer identification number (EIN). A number assigned by the IRS that is used by an employer when recording and paying payroll and income taxes.

Related concepts

Related coursework

Form SS-4 is the form filled out by an employer to get an EIN. The form is sent to the IRS, which assigns the number to the business.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Form SS-4. The form filled out by an employer to get an EIN. The form is sent to the IRS, which assigns the number to the business.

Related concepts

Related coursework

Form 941 tax is another term used to describe FIT, OASDI, and Medicare. This name comes from the form used to report these taxes.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Form 941 tax. Another term used to describe FIT, OASDI, and Medicare. This name comes from the form used to report these taxes.

Related concepts

Related coursework

Look-back period is a period of time used to determine whether a business should make its Form 941 tax deposits on a monthly or semiweekly basis. The IRS defines this period as July 1 through June 30 of the year prior to the year in which Form 941 tax deposits will be made.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Look-back period. A period of time used to determine whether a business should make its Form 941 tax deposits on a monthly or semiweekly basis. The IRS defines this period as July 1 through June 30 of the year prior to the year in which Form 941 tax deposits will be made.

Related concepts

Related coursework

Monthly depositor is a business classified as a monthly depositor will make its payroll tax deposits only once each month for the amount of Form 941 taxes due from the prior month.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Monthly depositor. A business classified as a monthly depositor will make its payroll tax deposits only once each month for the amount of Form 941 taxes due from the prior month.

Related concepts

Related coursework

Semiweekly depositor is a business classified as a semiweekly depositor may have to make its payroll tax deposits up to twice in one week, depending on when payroll is paid.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Semiweekly depositor. A business classified as a semiweekly depositor may have to make its payroll tax deposits up to twice in one week, depending on when payroll is paid.

Related concepts

Related coursework

Form 941 (Employer's Quarterly Federal Tax Return) is a tax report that a business will complete after the end of each calendar quarter indicating the total FICA (OASDI and Medicare) taxes owed plus the amount of FIT withheld from employees' pay for the quarter. If federal tax deposits have been made correctly and on time, the total amount deposited should equal the amount due on Form 941. Any difference results in a payment due or a refund.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Form 941 (Employer's Quarterly Federal Tax Return). A tax report that a business will complete after the end of each calendar quarter indicating the total FICA (OASDI and Medicare) taxes owed plus the amount of FIT withheld from employees' pay for the quarter. If federal tax deposits have been made correctly and on time, the total amount deposited should equal the amount due on Form 941. Any difference results in a payment due or a refund.

Related concepts

Related coursework

Form 940 (Employer's Annual Federal Unemployment Tax Return) is the form that is used by employers at the end of the calendar year to report the amount of unemployment tax due for the year. If more than $500 is cumulatively owed at the end of a quarter, it should be paid one month after the end of that quarter. Normally, the report is due January 31 after the calendar year, or February 10 if an employer has already made all deposits.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Form 940 (Employer's Annual Federal Unemployment Tax Return). This form is used by employers at the end of the calendar year to report the amount of unemployment tax due for the year. If more than $500 is cumulatively owed at the end of a quarter, it should be paid one month after the end of that quarter. Normally, the report is due January 31 after the calendar year, or February 10 if an employer has already made all deposits.

Related concepts

Related coursework

Form W-2 (Wage and Tax Statement) is a form completed by the employer at the end of the calendar year to provide a summary of gross earnings and deductions to each employee. At least three copies go to the employee, one copy to the IRS, one copy to any state where employee income taxes have been withheld, one copy to the Social Security Administration, and one copy into the records of the business.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Form W-2 (Wage and Tax Statement). A form completed by the employer at the end of the calendar year to provide a summary of gross earnings and deductions to each employee. At least three copies go to the employee, one copy to the IRS, one copy to any state where employee income taxes have been withheld, one copy to the Social Security Administration, and one copy into the records of the business.

Related concepts

Related coursework

Form W-3 (Transmittal of Wage and Tax Statements) is a form completed by the employer to verify the number of W-2s and amounts withheld as shown on them. This form is sent to the Social Security Administration data processing center along with copies of each employee's W-2 forms.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Form W-3 (Transmittal of Wage and Tax Statements). A form completed by the employer to verify the number of W-2s and amounts withheld as shown on them. This form is sent to the Social Security Administration data processing center along with copies of each employee's W-2 forms.

Related concepts

Related coursework

Modified Accelerated Cost Recovery System (MACRS) is a system for businesses to calculate depreciation for tax purposes based on the Tax Laws of 1986, 1989, and 2010; also known as the General Depreciation System (GDS).


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Modified Accelerated Cost Recovery System (MACRS). A system for businesses to calculate depreciation for tax purposes based on the Tax Laws of 1986, 1989, and 2010; also known as the General Depreciation System (GDS).

Related concepts

Related coursework

Uniform Partnership Act is laws enacted in most states that govern how a partnership is formed, operated, and liquidated.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Uniform Partnership Act. Laws enacted in most states that govern how a partnership is formed, operated, and liquidated.

Related concepts

Related coursework

Partnership is the association of two or more persons who act as co-owners of a business.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Partnership. The association of two or more persons who act as co-owners of a business.

Related concepts

Related coursework

Articles of partnership. The written contract that spells out the details of the agreement among the partners.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Articles of partnership. The written contract that spells out the details of the agreement among the partners.

Related concepts

Related coursework

Limited life is a requirement that a partnership is dissolved by admission, withdrawal, or death of a partner. Although the partnership is dissolved, the operations of the business can continue if a new partnership is formed.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Limited life. Partnership is dissolved by admission, withdrawal, or death of a partner. Although the partnership is dissolved, the operations of the business can continue if a new partnership is formed.

Related concepts

Related coursework

Mutual agency is act of a single partner is binding on all members of the partnership.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Mutual agency. Act of a single partner is binding on all members of the partnership.

Related concepts

Related coursework

General partner is a partner who has unlimited liability.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

General partner. A partner who has unlimited liability.

Related concepts

Related coursework

Limited partner is the partner's liability is limited to the amount of investment in the partnership.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Limited partner. The partner's liability is limited to the amount of investment in the partnership.

Related concepts

Related coursework

Co-ownership of property is each partner owns a share of the assets.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Co-ownership of property. Each partner owns a share of the assets.

Related concepts

Related coursework

Salary allowance is a mechanism for dividing earnings of a partnership based on personal services provided by the partners (not an expense).


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Salary allowance. A mechanism for dividing earnings of a partnership based on personal services provided by the partners (not an expense).

Related concepts

Related coursework

Interest allowance is a mechanism for dividing earnings of a partnership based on a percentage of capital balances of the partners (not an expense).


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Interest allowance. A mechanism for dividing earnings of a partnership based on a percentage of capital balances of the partners (not an expense).

Related concepts

Related coursework

Profit and loss ratio is an agreed-upon ratio used to divide earnings or losses of a partnership.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Profit and loss ratio. An agreed-upon ratio used to divide earnings or losses of a partnership.

Related concepts

Related coursework

Statement of partners' equity is a financial statement that reveals each partner's ownership percentage of the firm's capital. The ending figure for the firm's capital is then placed on the balance sheet.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Statement of partners' equity. A financial statement that reveals each partner's ownership percentage of the firm's capital. The ending figure for the firm's capital is then placed on the balance sheet.

Related concepts

Related coursework

Purchase of an equity interest is transfer of ownership between an existing partner and a new partner.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Purchase of an equity interest. Transfer of ownership between an existing partner and a new partner.

Related concepts

Related coursework

Bonus is when a new partner is admitted, he or she may pay more or less than equity interest. If the new partner pays more, the old partners share a bonus in the profit and loss ratio. Of course, the opposite could result, and the new partner could receive a bonus if he or she invests less than equity interest.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Bonus. When a new partner is admitted, he or she may pay more or less than equity interest. If the new partner pays more, the old partners share a bonus in the profit and loss ratio. Of course, the opposite could result, and the new partner could receive a bonus if he or she invests less than equity interest.

Related concepts

Related coursework

Retrieved from "https://pravka.bskol.com/w/index.php?title=Net_income&oldid=12668"