Net income

Franchise is a right granted by a business or government to produce or sell goods in a specific geographic region. Examples are Burger King and Holiday Inn.

Definitions

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

Franchise. A right granted by a business or government to produce or sell goods in a specific geographic region. Examples are Burger King and Holiday Inn.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Goodwill is when a business is purchased, the difference between the price paid and the fair value of the net assets is goodwill. Goodwill may depend on brand names, business location, service, or other elements; it is a valuable asset that plays an important part in the expected rate of future earnings of a business.

Definitions

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

Goodwill. When a business is purchased, the difference between the price paid and the fair value of the net assets is goodwill. Goodwill may depend on brand names, business location, service, or other elements; it is a valuable asset that plays an important part in the expected rate of future earnings of a business.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Impairment is value of an intangible asset that decreases and is written off.

Definitions

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

Impairment. Value of an intangible asset that decreases and is written off.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Unlimited liability is when partners may be personally liable for debts of the partnership.

Definitions

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

Unlimited liability. Partners may be personally liable for debts of the partnership.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Deficit is amount by which net income falls short of salary and interest allowances. Also an abnormal, or debit, balance in a partner's capital account.

Definitions

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

Deficit. Amount by which net income falls short of salary and interest allowances. Also an abnormal, or debit, balance in a partner's capital account.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Liquidation is the process that occurs when a business is terminated, the assets are sold, and liabilities and partners are paid off.

Definitions

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

Liquidation. Occurs when a business is terminated, the assets are sold, and liabilities and partners are paid off.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Realization is the conversion of noncash assets into cash in the liquidation process.

Definitions

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

Realization. The conversion of noncash assets into cash in the liquidation process.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Statement of cash flows is a financial report that provides a detailed breakdown of the specific increases and decreases in cash during an accounting period. It helps readers of the statement evaluate past performance as well as predict future cash flows of the business.

Definitions

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

Statement of cash flows. A financial report that provides a detailed breakdown of the specific increases and decreases in cash during an accounting period. It helps readers of the statement evaluate past performance as well as predict future cash flows of the business.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Comparative balance sheet is a balance sheet listing financial condition for 2 or more years in a side-by-side manner. This format allows the reader to make quick comparisons between the two balance sheet dates. Current and past financial reports covering two or more successive periods that place data in single columns side by side.

Definitions

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

Comparative balance sheet. Current and past financial reports covering two or more successive periods that place data in single columns side by side. Current and past financial reports covering two or more successive periods that place data in single columns side by side.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Operating activity is the activity most closely related to conducting the business for which the enterprise was established. Activities such as selling merchandise and services to customers and paying salaries and other expenses needed to continue earning the operating revenue are classified as operating activities.

Definitions

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

Operating activity. Those activities most closely related to conducting the business for which the enterprise was established. Activities such as selling merchandise and services to customers and paying salaries and other expenses needed to continue earning the operating revenue are classified as operating activities.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Cash inflow is any increase in cash is called a cash inflow or a source of cash. When listing the total for a major section of the statement of cash flows, if cash is increased, the figure is often described as "cash provided" by operating activities (or by investing activities or financing activities).

Definitions

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

Cash inflow. Any increase in cash is called a cash inflow or a source of cash. When listing the total for a major section of the statement of cash flows, if cash is increased, the figure is often described as "cash provided" by operating activities (or by investing activities or financing activities).

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Cash outflow is a decrease in cash is called a cash outflow or a use of cash. When listing a total for a major section of the statement of cash flows, if cash has decreased, the figure is often described as "cash used" in operating activities (or in investing activities or financing activities). *Investing activities. Activities such as purchase and sale of plant and equipment and placing excess cash in stocks, bonds, and notes of other companies.

Definitions

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

Cash outflow. A decrease in cash is called a cash outflow or a use of cash. When listing a total for a major section of the statement of cash flows, if cash has decreased, the figure is often described as "cash used" in operating activities (or in investing activities or financing activities). *Investing activities. Activities such as purchase and sale of plant and equipment and placing excess cash in stocks, bonds, and notes of other companies.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Financing activity is any activity relating to raising money from investors and creditors such as the issuance of stocks, bonds, and long-term notes; also, repurchase of outstanding stock and retiring bonds and notes as well as paying dividends.

Definitions

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

Financing activities. Activities relating to raising money from investors and creditors such as the issuance of stocks, bonds, and long-term notes; also, repurchase of outstanding stock and retiring bonds and notes as well as paying dividends.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Noncash investing and financing activity is a transaction such as the issuance of stock in exchange for land would be listed in a footnote or a separate schedule to the statement of cash flows, because such transactions would not be reported separately on any other financial statement.

Definitions

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

Noncash investing and financing activities. Transactions such as the issuance of stock in exchange for land would be listed in a footnote or a separate schedule to the statement of cash flows, because such transactions would not be reported separately on any other financial statement.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Indirect method is one of two methods of preparing the net cash flow from the operating activities section of the statement of cash flows. Involves converting the accrual basis net income figure from the income statement to the net cash flows from operating activities.

Definitions

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

Indirect method. One of two methods of preparing the net cash flow from the operating activities section of the statement of cash flows. Involves converting the accrual basis net income figure from the income statement to the net cash flows from operating activities.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Direct method is one of two methods of preparing the cash flow from operating activities section of the statement of cash flows. Each of the major areas of sources and uses of cash for operations is detailed separately.

Definitions

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

Direct method. One of two methods of preparing the cash flow from operating activities section of the statement of cash flows. Each of the major areas of sources and uses of cash for operations is detailed separately.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Horizontal analysis is amounts of items compared on the same line of comparative financial reports. Horizontal analysis can also be in the form of a trend analysis.

Definitions

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

Horizontal analysis. Amounts of items compared on the same line of comparative financial reports. Horizontal analysis can also be in the form of a trend analysis.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Vertical analysis is comparing items in a financial report by expressing each item as a percentage of a certain base total.

Definitions

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

Vertical analysis. Comparing items in a financial report by expressing each item as a percentage of a certain base total.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Common-size statement is a comparative report in which each item is expressed as a percentage of a base amount without dollar amounts.

Definitions

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

Common-size statements. Comparative reports in which each item is expressed as a percentage of a base amount without dollar amounts.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Trend analysis is a type of horizontal analysis that deals with percentage changes in items on the financial reports for several years. This analysis uses a base year to calculate the percentage change of each item.

Definitions

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

Trend analysis. A type of horizontal analysis that deals with percentage changes in items on the financial reports for several years. This analysis uses a base year to calculate the percentage change of each item.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Ratio is a relationship of two quantities or numbers, one divided by the other.

Definitions

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

Ratio. A relationship of two quantities or numbers, one divided by the other.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Ratio analysis is an examination of the relationship between two numbers or sets of numbers on financial reports. Analyses of ratios, especially over time, can give a fairly clear picture of how well a company conducts its business.

Definitions

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

Ratio analysis. An examination of the relationship between two numbers or sets of numbers on financial reports. Analyses of ratios, especially over time, can give a fairly clear picture of how well a company conducts its business.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Liquidity ratio is the two ratios—current ratio and acid test ratio—which measure a company’s ability to pay off short-term debts.

Definitions

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

Liquidity ratio. The two ratios—current ratio and acid test ratio—which measure a company’s ability to pay off short-term debts.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Asset management ratio is those ratios—accounts receivable turnover, average collection period, inventory turnover, and asset turnover—which measure how effectively a company uses its assets.

Definitions

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

Asset management ratio. Those ratios—accounts receivable turnover, average collection period, inventory turnover, and asset turnover—which measure how effectively a company uses its assets.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Debt management ratio is those ratios—debt to total assets, debt to stockholders' equity, and times interest earned—which measure a company's mix of debt and equity financing.

Definitions

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

Debt management ratio. Those ratios—debt to total assets, debt to stockholders' equity, and times interest earned—which measure a company's mix of debt and equity financing.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Profitability ratio is those ratios—gross profit rate, return on sales, return on total assets, and return on common stockholders' equity—which measure a company's ability to earn a profit.

Definitions

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

Profitability ratio. Those ratios—gross profit rate, return on sales, return on total assets, and return on common stockholders' equity—which measure a company's ability to earn a profit.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Current ratio is a liquidity ratio; current assets are divided by current liabilities to indicate a company's ability to pay its short-term debt. This ratio does not provide as much certainty as the acid test ratio.

Definitions

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

Current ratio. A liquidity ratio; current assets are divided by current liabilities to indicate a company's ability to pay its short-term debt. This ratio does not provide as much certainty as the acid test ratio.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Acid test ratio is a liquidity ratio; those assets that are most easily converted to cash are divided by current liabilities to indicate ability to pay off short-term debt. Also called quick ratio.

Definitions

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

Acid test ratio. A liquidity ratio; those assets that are most easily converted to cash are divided by current liabilities to indicate ability to pay off short-term debt. Also called quick ratio.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Quick asset is those assets — mainly cash, accounts receivable, and notes receivable—that can be easily turned into cash.

Definitions

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

Quick asset. Those assets — mainly cash, accounts receivable, and notes receivable—that can be easily turned into cash.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Accounts receivable turnover ratio is a ratio that indicates the number of times accounts receivable are converted to cash within a given period and the effectiveness of a company's credit policy.

Definitions

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

Accounts receivable turnover ratio. A ratio that indicates the number of times accounts receivable are converted to cash within a given period and the effectiveness of a company's credit policy.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Average collection period is a ratio that shows how quickly moneys owed are received from customers and thereby measures how effectively a company collects its accounts receivable.

Definitions

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

Average collection period. A ratio that shows how quickly moneys owed are received from customers and thereby measures how effectively a company collects its accounts receivable.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Inventory turnover ratio is an asset management ratio that indicates how quickly inventory moves off the shelf and therefore how well a company sells its product.

Definitions

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

Inventory turnover ratio. An asset management ratio that indicates how quickly inventory moves off the shelf and therefore how well a company sells its product.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Asset turnover ratio is a ratio that indicates how efficiently a company uses its assets to generate sales and thus helps measure the overall efficiency of the company.

Definitions

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

Asset turnover ratio. A ratio that indicates how efficiently a company uses its assets to generate sales and thus helps measure the overall efficiency of the company.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Debt to total assets ratio is a ratio that shows how much of a company's assets are financed by creditors.

Definitions

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

Debt to total assets ratio. A ratio that shows how much of a company's assets are financed by creditors.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Debt to stockholders' equity ratio is a ratio in which total liabilities are divided by the amount of stock that is owned to measure the risk creditors run in comparison with stockholders.

Definitions

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

Debt to stockholders' equity ratio. A ratio in which total liabilities are divided by the amount of stock that is owned to measure the risk creditors run in comparison with stockholders.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Times interest earned ratio is a debt management ratio indicating the degree of risk to lenders that a company will default on its interest payments. Also called interest coverage ratio.

Definitions

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

Times interest earned ratio. A debt management ratio indicating the degree of risk to lenders that a company will default on its interest payments. Also called interest coverage ratio.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Gross profit rate is a profitability ratio that indicates how well net sales cover administrative and selling expenses.

Definitions

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

Gross profit rate. A profitability ratio that indicates how well net sales cover administrative and selling expenses.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Return on sales ratio is a profitability ratio that shows the relationship of net income before taxes to net sales and thereby the effectiveness of a company's pricing policy.

Definitions

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

Return on sales ratio. A profitability ratio that shows the relationship of net income before taxes to net sales and thereby the effectiveness of a company's pricing policy.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Return on total assets ratio is a profitability ratio that measures how wisely a company has invested in and managed its assets. This ratio can be arrived at in two ways: (1) net income before interest and taxes divided by total assets and (2) return on sales multiplied by asset turnover.

Definitions

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

Return on total assets ratio. A profitability ratio that measures how wisely a company has invested in and managed its assets. This ratio can be arrived at in two ways: (1) net income before interest and taxes divided by total assets and (2) return on sales multiplied by asset turnover.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Voucher is a written authorization form containing data about a transaction along with proper authorizations for payment, account distributions, and so forth.

Definitions

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

Voucher. A written authorization form containing data about a transaction along with proper authorizations for payment, account distributions, and so forth.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Voucher system is an internal control system designed to control a company's cash payments.

Definitions

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

Voucher system. An internal control system designed to control a company's cash payments.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Voucher register is a special journal replacing the purchases journal; it records prenumbered vouchers at the time the liabilities are incurred.

Definitions

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

Voucher register. A special journal replacing the purchases journal; it records prenumbered vouchers at the time the liabilities are incurred.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Vouchers Payable is a liability account in the general ledger that represents the controlling account for the sum of individual vouchers.

Definitions

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

Vouchers Payable. A liability account in the general ledger that represents the controlling account for the sum of individual vouchers.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Unpaid voucher file (tickler file) is the file containing unpaid vouchers arranged by due dates to take advantage of cash discounts.

Definitions

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

Unpaid voucher file (tickler file). The file containing unpaid vouchers arranged by due dates to take advantage of cash discounts.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Check register is a special journal that replaces the cash payments journal in recording payments of vouchers.

Definitions

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

Check register. A special journal that replaces the cash payments journal in recording payments of vouchers.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Paid voucher file is the file that holds paid vouchers filed either in sequential order by voucher number or alphabetically by creditor's name.

Definitions

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

Paid voucher file. Holds paid vouchers filed either in sequential order by voucher number or alphabetically by creditor's name.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Profit center is a unit or department that incurs costs and generates revenues.

Definitions

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

Profit center. A unit or department that incurs costs and generates revenues.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Cost center is a unit or department that incurs costs but does not generate revenues.

Definitions

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

Cost center. A unit or department that incurs costs but does not generate revenues.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Direct expenses are expenses that can be traced directly to a specific department.

Definitions

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

Direct expenses. Expenses that can be traced directly to a specific department.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Indirect expenses are expenses that cannot be traced directly to one department.

Definitions

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

Indirect expenses. Expenses that cannot be traced directly to one department.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Contribution margin is a department's net profit, used to cover indirect expenses.

Definitions

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

Contribution margin. A department's net profit, used to cover indirect expenses.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Raw material is material that is to be processed into a finished product or that changes the quality or characteristics of the product.

Definitions

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

Raw material. Material that is to be processed into a finished product or that changes the quality or characteristics of the product.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Direct labor is the wages of those persons whose efforts directly affect the quality or other characteristics of the products manufactured.

Definitions

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

Direct labor. The wages of those persons whose efforts directly affect the quality or other characteristics of the products manufactured.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Manufacturing overhead is all the manufacturing costs except raw material and direct labor.

Definitions

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

Manufacturing overhead. All the manufacturing costs except raw material and direct labor.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Receiving report is a document prepared by the receiving department to evidence the receipt of material or supplies that had been ordered.

Definitions

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

Receiving report. A document prepared by the receiving department to evidence the receipt of material or supplies that had been ordered.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Material requisition is a document used to order material or supplies from the storeroom that provides the basis for charging material into production.

Definitions

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

Material requisition. A document used to order material or supplies from the storeroom that provides the basis for charging material into production.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Clock card is a card used by employees when clocking in and out of the factory; it becomes the basis for the payroll.

Definitions

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

Clock card. A card used by employees when clocking in and out of the factory; it becomes the basis for the payroll.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Lot ticket is a document prepared to show the movement of materials or products between departments. Also called move ticket.

Definitions

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

Lot ticket. A document prepared to show the movement of materials or products between departments. Also called move ticket.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Labor distribution report is a report issued by the payroll department to categorize all the types of labor incurred during the week.

Definitions

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

Labor distribution report. A report issued by the payroll department to categorize all the types of labor incurred during the week.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Bill of lading is a formal document issued to the carrier of the finished product. It is the basis for charging the cost of goods sold.

Definitions

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

Bill of lading. A formal document issued to the carrier of the finished product. It is the basis for charging the cost of goods sold.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Principles of Accounting.

Return on common stockholders' equity ratio is a profitability ratio that indicates how well a company is managing debt financing to earn a profit for holders of common stock.

Definitions

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

Return on common stockholders' equity ratio. A profitability ratio that indicates how well a company is managing debt financing to earn a profit for holders of common stock.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Corporation is a business organization that is both a legal and accounting entity.

Definitions

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

Corporation. Business organization that is both a legal and accounting entity.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Incorporator is a person responsible for getting the corporation formed.

Definitions

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

Incorporator. A person responsible for getting the corporation formed.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Articles of incorporation is the document submitted by incorporators when applying for a charter.

Definitions

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

Articles of incorporation. Document submitted by incorporators when applying for a charter.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Charter is a document issued to a corporation by the state that includes certificate of incorporation along with articles of incorporation.

Definitions

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

Charter. Document issued to a corporation by the state that includes certificate of incorporation along with articles of incorporation.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Certificate of incorporation is a document granted by the state authorizing the creation of a corporation.

Definitions

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

Certificate of incorporation. Document granted by the state authorizing the creation of a corporation.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Stockholder is an owner of the stock of the corporation.

Definitions

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

Stockholder. An owner of the stock of the corporation.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Corporate director is an officer elected by stockholders to represent the company and establish policies for the company.

Definitions

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

Corporate director. An officer elected by stockholders to represent the company and establish policies for the company.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Minute book is the book that records meetings of the board of directors or stockholders.

Definitions

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

Minute book. Book that records meetings of the board of directors or stockholders.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Limited liability is freedom of stockholders from personal liability for the debts of the corporation.

Definitions

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

Limited liability. Freedom of stockholders from personal liability for the debts of the corporation.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Stock certificate is a formal document issued to investors in a corporation that shows the number of shares purchased.

Definitions

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

Stock certificate. Formal document issued to investors in a corporation that shows the number of shares purchased.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Paid-In Capital is a section of stockholders' equity representing what stockholders have invested into the corporation.

Definitions

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

Paid-In Capital. Section of stockholders' equity representing what stockholders have invested into the corporation.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Retained Earnings are accumulated profits of a corporation that have been kept in the business and not paid out as dividends. Retained Earnings is part of stockholders' equity.

Definitions

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

Retained Earnings. Accumulated profits of a corporation that have been kept in the business and not paid out as dividends. Retained Earnings is part of stockholders' equity.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Capital stock is classes of stock that represent the fractional elements of ownership of a corporation.

Definitions

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

Capital stock. Classes of stock that represent the fractional elements of ownership of a corporation.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Authorized capital stock is the number of shares of capital stock (common and preferred) that a corporation can sell.

Definitions

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

Authorized capital stock. The number of shares of capital stock (common and preferred) that a corporation can sell.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Issued capital stock is stock that the corporation issues for assets or services contributed by the stockholders.

Definitions

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

Issued capital stock. Stock that the corporation issues for assets or services contributed by the stockholders.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Outstanding capital stock is stock that is held and owned by stockholders. Common stock Part of paid-in capital representing the basic ownership equity of the corporation. If the corporation has only one class of stock, it will be common stock.

Definitions

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

Outstanding capital stock. Stock that is held and owned by stockholders. Common stock Part of paid-in capital representing the basic ownership equity of the corporation. If the corporation has only one class of stock, it will be common stock.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Preemptive right is the right of the stockholder to purchase additional shares of stock to maintain a proportionate interest when the corporation issues additional stock.

Definitions

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

Preemptive right. The right of the stockholder to purchase additional shares of stock to maintain a proportionate interest when the corporation issues additional stock.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Preferred stock is class of capital stock that has preference to a corporation's profits and assets.

Definitions

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

Preferred stock. Class of capital stock that has preference to a corporation's profits and assets.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Dividend is cash, other assets, or shares of stock that a corporation issues to the stockholders.

Definitions

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

Dividend. Cash, other assets, or shares of stock that a corporation issues to the stockholders.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Cumulative preferred stock is stock that entitles its holders to any undeclared dividends that have accumulated before common stockholders receive their dividends.

Definitions

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

Cumulative preferred stock. Stock that entitles its holders to any undeclared dividends that have accumulated before common stockholders receive their dividends.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Dividends in arrears are the dividends owed to cumulative preferred stockholders that must be paid before common stockholders can receive their dividends.

Definitions

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

Dividends in arrears. Dividends owed to cumulative preferred stockholders that must be paid before common stockholders can receive their dividends.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Noncumulative preferred stock is preferred stock that does not entitle its holders to a dividend for any year in which a dividend is not declared. *Nonparticipating preferred stock. Preferred stock that entitles its holders only to a certain percentage of dividend, the remainder going to holders of common stock.

Definitions

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

Noncumulative preferred stock. Preferred stock that does not entitle its holders to a dividend for any year in which a dividend is not declared. *Nonparticipating preferred stock. Preferred stock that entitles its holders only to a certain percentage of dividend, the remainder going to holders of common stock.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Participating preferred stock is stock that entitles its holders not only to a fixed dividend but also to an opportunity to share in additional dividends with common stockholders.

Definitions

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

Participating preferred stock. Stock that entitles its holders not only to a fixed dividend but also to an opportunity to share in additional dividends with common stockholders.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Par value is an arbitrary value that is placed on each share of stock. Par value represents legal capital and not market value.

Definitions

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

Par value. An arbitrary value that is placed on each share of stock. Par value represents legal capital and not market value.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Legal capital is minimum amount of capital that a corporation must leave in the company (cannot be withdrawn by stockholders) for the protection of the creditors.

Definitions

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

Legal capital. Minimum amount of capital that a corporation must leave in the company (cannot be withdrawn by stockholders) for the protection of the creditors.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

No-par stock is stock with no par value. A stated value could be placed on it.

Definitions

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

No-par stock. Stock with no par value. A stated value could be placed on it.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Stated value is arbitrary value placed by the board of directors on each share of no-par stock to fulfill legal capital requirements.

Definitions

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

Stated value. Arbitrary value placed by the board of directors on each share of no-par stock to fulfill legal capital requirements.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Premium is a term that records the sale of stock at more than par value. In this book we use the account Paid-In Capital in Excess of Par Value to record the premium received.

Definitions

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

Premium. A term that records the sale of stock at more than par value. In this book we use the account Paid-In Capital in Excess of Par Value to record the premium received.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Common Paid-In Capital in Excess of Par Value is the difference between what stockholders invest and par value. This amount is not credited to the Common Stock account.

Definitions

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

Common Paid-In Capital in Excess of Par Value. Difference between what stockholders invest and par value. This amount is not credited to the Common Stock account.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Discount on stock is the difference between the par value of the stock and an amount less than the par value that the stockholders have contributed. Discounts do not happen often.

Definitions

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

Discount on stock. The difference between the par value of the stock and an amount less than the par value that the stockholders have contributed. Discounts do not happen often.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Common Paid-In Capital in Excess of Stated Value is the difference between what stockholders invest and the stated value placed on stock by the board of directors. This amount is not credited to the Common Stock account.

Definitions

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

Common Paid-In Capital in Excess of Stated Value. Difference between what stockholders invest and the stated value placed on stock by the board of directors. This amount is not credited to the Common Stock account.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Organization cost is an intangible asset that records the initial cost of forming the corporation, such as legal and incorporating fees. Today, it is being expensed.

Definitions

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

Organization cost. An intangible asset that records the initial cost of forming the corporation, such as legal and incorporating fees. Today, it is being expensed.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Stock subscription is a contractual agreement to buy a certain number of shares of stock from a corporation at a specific price.

Definitions

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

Stock subscription. A contractual agreement to buy a certain number of shares of stock from a corporation at a specific price.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Common Stock Subscribed is a temporary stockholders’ equity account that records at par value stock that has been subscribed to but not fully paid for.

Definitions

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

Common Stock Subscribed. Temporary stockholders’ equity account that records at par value stock that has been subscribed to but not fully paid for.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Common Stock Subscriptions Receivable is current asset on balance sheet that represents amount due on stock subscriptions.

Definitions

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

Common Stock Subscriptions Receivable. Current asset on balance sheet that represents amount due on stock subscriptions.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Source-of-capital approach is method of preparing Paid-In Capital by listing classes of stockholder sources of capital. Legal capital approach Method of preparing Paid-In Capital by listing the legal section first.

Definitions

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

Source-of-capital approach. Method of preparing Paid-In Capital by listing classes of stockholder sources of capital. Legal capital approach Method of preparing Paid-In Capital by listing the legal section first.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Redemption value is the price per share a corporation pays to redeem or retire capital stock.

Definitions

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

Redemption value. The price per share a corporation pays to redeem or retire capital stock.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Market value is the price that a buyer pays to purchase shares of capital stock in the open market. Of course, for every buyer there is a seller.

Definitions

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

Market value. The price that a buyer pays to purchase shares of capital stock in the open market. Of course, for every buyer there is a seller.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Book value per share is amount of net assets that a stockholder would receive on a per share basis, assuming no gain or loss on the sale of the assets.

Definitions

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

Book value per share. Amount of net assets that a stockholder would receive on a per share basis, assuming no gain or loss on the sale of the assets.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Dividend is cash or other assets that a corporation distributes as earnings to stockholders.

Definitions

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

Dividend. Cash or other assets that a corporation distributes as earnings to stockholders.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Date of declaration is the date upon which the board of directors of a corporation formally declares a dividend.

Definitions

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

Date of declaration. The date upon which the board of directors of a corporation formally declares a dividend.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Dividend is payable liability showing amount of cash dividend owed.

Definitions

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

Dividend. Payable Liability showing amount of cash dividend owed.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Date of record is the date of ownership that determines which stockholders will receive the dividend.

Definitions

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

Date of record. The date of ownership that determines which stockholders will receive the dividend.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Date of payment is the date the dividend is paid. *Cash dividend. Dividend that is paid in cash.

Definitions

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

Date of payment. The date the dividend is paid. *Cash dividend. Dividend that is paid in cash.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Stock dividend is stock that is distributed to stockholders instead of cash or other assets.

Definitions

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

Stock dividend. Stock that is distributed to stockholders instead of cash or other assets.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Common Stock Dividend is distributable Stockholders' equity account that accumulates a stock dividend that has been declared but not yet issued and distributed.

Definitions

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

Common Stock Dividend. Distributable Stockholders' equity account that accumulates a stock dividend that has been declared but not yet issued and distributed.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Stock split is issuing of additional shares of stock to stockholders; total par or stated value remains the same.

Definitions

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

Stock split. Issuing of additional shares of stock to stockholders; total par or stated value remains the same.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Treasury stock is stock that has been issued but has been bought back by the corporation or received as a gift.

Definitions

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

Treasury stock. Stock that has been issued but has been bought back by the corporation or received as a gift.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Paid-In Capital from Treasury Stock is stockholders' equity account that records amounts more or less than par value of treasury stock sold. The balance of this account can never be negative.

Definitions

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

Paid-In Capital from Treasury Stock. Stockholders' equity account that records amounts more or less than par value of treasury stock sold. The balance of this account can never be negative.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Appropriated retained earnings (restricted retained earnings) is that portion of Retained Earnings that is not available for dividends.

Definitions

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

Appropriated retained earnings (restricted retained earnings). That portion of Retained Earnings that is not available for dividends.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Statement of retained earnings is a financial report that reveals the changes in retained earnings for a particular period of time.

Definitions

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

Statement of retained earnings. A financial report that reveals the changes in retained earnings for a particular period of time.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Prior period adjustment is correction made in the current year of a mistake made in previous years. The adjustment is updated on the statement of retained earnings.

Definitions

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

Prior period adjustment. Correction made in the current year of a mistake made in previous years. The adjustment is updated on the statement of retained earnings.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

Bond is an interest-bearing note payable usually in $1,000 denominations issued by a corporation to a large group of lenders.

Definitions

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

Bond. An interest-bearing note payable usually in $1,000 denominations issued by a corporation to a large group of lenders.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

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 transactions of legal entities. 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.

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 transactions of legal entities. 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.

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 transactions of legal entities. 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.

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 transactions of legal entities. 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.

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 transactions of legal entities. 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.

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 transactions of legal entities. 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.

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 transactions of legal entities. 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.

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 transactions of legal entities. 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.

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 transactions of legal entities. 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.

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 transactions of legal entities. 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.

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 transactions of legal entities. 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.

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 transactions of legal entities. 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.

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 transactions of legal entities. 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.

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 transactions of legal entities. 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.

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 transactions of legal entities. 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.

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 transactions of legal entities. 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.

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 transactions of legal entities. 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.

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 transactions of legal entities. 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.

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 transactions of legal entities. 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.

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 transactions of legal entities. 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.

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 transactions of legal entities. 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.

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 transactions of legal entities. 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.

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 transactions of legal entities. 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.

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 W-4 form, and the marital status indicated on the 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 W-4 form, and the marital status indicated on the W-4 form.

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

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 transactions of legal entities. 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.

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 transactions of legal entities. 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.

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 transactions of legal entities. 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.

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 transactions of legal entities. 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.

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 transactions of legal entities. 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.

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 transactions of legal entities. 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.

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 transactions of legal entities. 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.

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 transactions of legal entities. 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.

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

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

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

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

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

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

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

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

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

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

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

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

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

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

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

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

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

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

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

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

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

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

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

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

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

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

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

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

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

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

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.

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

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Partnership Accounting.

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

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Partnership Accounting.

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

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Partnership Accounting.

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

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Partnership Accounting.

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

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Partnership Accounting.

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

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Partnership Accounting.

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

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Partnership Accounting.

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

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Partnership Accounting.

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

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Partnership Accounting.

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

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Partnership Accounting.

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

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Partnership Accounting.

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

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Partnership Accounting.

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

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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

• Partnership Accounting.