Accounting HomeProduct InfoSite MapSearchContact Us

 
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

A

401(k) plan
  An employee contributes a portion of gross earnings to an account in the 401(k) plan and does not pay income tax on the contributed earnings.

account  Subdivision under the three sections of the accounting equation used to summarize incre
ases and decreases in assets, liabilities, and owner's equity.

accountant  A person who handles a broad range of jobs related to the making of choices and decisions about the design of a business's accounting system and the preparation and explanation of financial reports.

accounting clerk  Entry-level job that can vary with the size of the company from specialization in one part of the system to a wide range of recordkeeping tasks.

accounting cycle  The accounting period of a business is separated into activities that help the business keep its accounting records in an orderly fashion.

accounting equation  The basis for keeping all accounting records in balance. Assets = liabilities + owner's equity

accounting period  A period of time covered by an accounting report.

accounting system  A systematic process of recording and reporting the financial information resulting from business transactions.

accounts payable  The amount of money owed, or payable, to the creditors of a business.

accounts payable subsidiary ledger  A separate ledger that contains accounts for all creditors; it is summarized in the Accounts Payable controlling account in the general ledger.

accounts receivable  The total amount of money owed to a business.

accounts receivable subsidiary ledger  A separate ledger that contains accounts for all charge customers; it is summarized in the Accounts Receivable controlling account in the general ledger.

accumulated depreciation  The total amount of depreciation for a plant asset that has been recorded up to a specific point in time.

accumulated earnings  The employee's year-to-date gross earnings, or the employee's gross earnings from the beginning of the year through the end of each pay period.

adjustment  An amount that is added to or subtracted from an account balance to bring that balance up-to-date.

administrative expenses  Costs related to the management of a business (for example, office expenses).

aging of accounts receivable method  A method of estimating bad debts expense in which each customer's account is examined and classified by age; the age classifications are multiplied by certain percentages; and the total estimated uncollectible amounts are added to determine the end-of-period balance of Allowance for Uncollectible Accounts.

allowance  Reduces the amount of income tax to be withheld.

allowance method  A method of accounting for uncollectible accounts in which an estimate is made of the amount of sales on account for which payment will not be received.

assets  Property or items of value owned by a business.

authorized capital stock The maximum number of shares of stock a corporation may issue.


A
B C D E F G H I J K L M N O P Q R S T U V W X Y Z


B


balance
sheet  A report of the balances in all asset, liability, and owner's equity accounts at the end of the period.

bank discount
 The interest charge deducted in advance on a non-interest-bearing note payable.

bank service charge  A fee the bank charges for maintaining bank records and processing bank statement items for the depositor.

bank statement  An itemized record of all the transactions in a depositor's account over a given period, usually a month.

bankcard  A card issued by a bank that can be used to withdraw cash and to make payments for goods and services at many businesses in place of writing checks.

bankcard fee  A fee charged for handling bank card sales slips; it is usually based on the total dollar volume of the bank card sales processed.

base year  A year or period that is used for comparison in financial statements analysis.

beginning inventory  The merchandise a business has on hand at the beginning of a fiscal period.

board of directors  A group of people, elected by the common stockholders, who are responsible for the affairs of a corporation.

book value  The value of an asset at a specific point in time. For a plant asset, it equals the initial cost of the plant asset minus the accumulated depreciation.

book value of accounts receivable  The amount the business can reasonably expect to receive from all its charge customers.

business entity  Exists independently of its owner's personal holdings. The accounting records and reports are maintained separately and contain financial information related only to the business.

business transaction  A business event, such as the buying, selling, or exchange of goods, that causes a change in the assets, liabilities, or owner's equity of a business.


A
B C D E F G H I J K L M N O P Q R S T U V W X Y Z


C


calendar year
 Period for which a business begins on January 1 and ends on December 31.

canceled checks
Checks paid by the bank and deducted from the depositor's account.

capital  Money supplied by investors, banks, or owners of a business. Refers to the dollar value of assets contributed to the business.

Capital Stock  The account that represents the total amount of investment in the corporation by its stockholders (owners).

cash discount  The amount a customer can deduct from the amount owed for purchased merchandise if payment is made within a certain time.

cash payments journal  A special journal used to record all transactions in which cash is paid out or decreased.

cash receipt  The cash received by a business.

cash receipts journal  A special journal used to record all transactions in which cash is received.

cash sale  A transaction in which the business receives full payment for the merchandise sold at the time of the sale.

certified public accountant  A public accountant who has passed the licensing exam on accounting theory, practice, auditing, and business law. (CPA)

change fund  An amount of money, consisting of varying denominations of bills and coins, that is used to make change in cash transactions.

charge customer  A customer to whom a sale on account is made.

chart of accounts  A list of all the accounts and their assigned account numbers, used in journalizing transactions.

charter  A legal written permission that gives a corporation certain rights and privileges and spells out the rules under which the corporation is to operate.

check  A written order from a depositor telling the bank to pay a stated amount of cash to the person or business named on the check.

check stub  A source document that lists the same information that appears on a check and shows the balance in the checking account before and after each check is written.

checking account  Allows a person or business to deposit cash in a bank and to write checks against the account balance.

closely held corporation  A corporation, often owned by a few people or by a family, that does not offer its stock for sale to the general public.

closing entries  Journal entries made to close, or reduce to zero, the balances in the temporary capital accounts and to transfer the net income or net loss for the period to the capital account.

commission  An amount paid to an employee based on a percentage of the employee's sales.

common stock  The stock issued by a corporation when it is authorized to issue only one class of stock.

comparability  The accounting principle that allows the financial information from one period to be compared to that of another period; also, the comparison of financial information of two or more businesses.

compound entry  A journal entry with two or more debits or two or more credits.

computerized accounting system  A system in which financial information is recorded by entering it into a computer.

conservatism principle  Accounting guideline requiring that accountants choose the safer, or more conservative, method when there is a choice of procedures.

consistency principle
 The consistent use of an inventory costing method helps owners and creditors compare financial reports from one period to another.

contra account
  An account whose balance is a decrease to another account.

controlling account  An account that acts as a control on the accuracy of the accounts in a related subsidiary ledger; its balance must equal the total of all the account balances in the subsidiary ledger.

corporation  Business organization that is recognized by law to have a life of its own.

correcting entry  An entry made to correct an error in a journal entry discovered after posting.

cost of merchandise
 The actual cost to the business of the merchandise sold to customers.

credit  An agreement to pay for a purchase at a later time; an entry to the right side of a T account. credit cards Cards containing a customer's name and account number presented when buying merchandise on account.

credit memorandum  A form that lists the details of a sales return or sales allowance.

credit terms  Terms that set out the time allowed for payment for a sale on account.

creditor  A person or business that has a claim to the assets of a business; a person or business to which money is owed.

current assets  Assets that are either used up or converted to cash during the normal operating cycle of the business, usually one year.

current liabilities  Debts of the business that must be paid within the next accounting period.

current ratio  The relationship between current assets and current liabilities; calculated by dividing the dollar amount of current assets by the dollar amount of current liabilities.


A
B C D E F G H I J K L M N O P Q R S T U V W X Y Z


D


debit
  An amount entered on the left side of the T account.

debit memorandum  The form a business uses to notify its supplier (creditor) of a return or allowance.

deduction  An amount that is subtracted from an employee's gross earnings.

deposit slip  A bank form listing the cash and checks to be deposited.

depositor  A person or business that has cash on deposit in a bank.

depreciation  Allocating the cost of a plant asset over an asset's useful life.

direct deposit   The depositing of an employee's net pay directly into her or his personal bank account; usually made through electronic funds transfer.

direct write-off method  A procedure in which an uncollectible account is removed from the accounts receivable subsidiary ledger and the controlling account in the general ledger when a business determines that the amount owed is not going to be paid.

discount period
  The period of time within which an invoice must be paid if a discount is to be taken.

disposal value  The estimated value of a plant asset at its replacement time; often called trade-in value or salvage value.

dividend  A return on the investments by the stockholders of a corporation; charged against the corporation's retained earnings.

double-entry accounting
  A financial recordkeeping system in which each transaction affects at least two accounts; for each debit there must be an equal credit.

drawee  The bank on which a check is written.

drawer  The person who signs a check.

due dates  The date by which an invoice must be paid.


A
B C D E F G H I J K L M N O P Q R S T U V W X Y Z


E


electronic badge readers
  Employee is issued an identification badge with a magnetic strip that contains employee information. When the employee inserts the identification badge into the badge reader, the magnetic strip is scanned and information is transferred directly to the computer.

Electronic Federal Tax Payment System (EFTPS)
  Larger businesses deposit income tax payments by electronic funds transfer.

Electronic Funds Transfer System (EFTS)  Allows banks to transfer funds among accounts quickly and accurately without the exchange of checks.

employee's earnings record  An individual payroll record prepared for each employee; includes data on earnings, deductions, net pay, and accumulated earnings.

ending inventory   The merchandise a business has on hand at the end of a fiscal period.

endorsement   An authorized signature written or stamped on the back of a check representing receipt and deposit or payment of check.

entrepreneur  A person who transforms ideas for products or services into real-world businesses.

equity  The total financial claims to the assets, or property, of a business.

expense  The cost of the goods or services that are used to operate a business; expenses decrease owner's equity.

external controls   The measures and procedures provided outside the business to protect cash and other assets.


A
B C D E F G H I J K L M N O P Q R S T U V W X Y Z


F


face value
  The amount written on the face of a promissory note; usually the same as the principal.

Federal Tax Deposit Coupon   A form sent with payment for FICA and federal income taxes or federal unemployment taxes to indicate the total amount of taxes being paid.

Federal Unemployment Tax Act (FUTA)
  Requires employers to pay unemployment taxes.

financial accounting  Reporting information to external users (individuals not directly involved in the day-to-day operations of the business).

financial claims  Legal rights to an item. financial reports Summarized information about the financial status of a business.

financial statements  Prepared to summarize the changes resulting from business transactions that occur during an accounting period.

first-in, first-out method  An inventory costing method that assumes that the first items purchased (first in) were the first items sold (first out).

fiscal year  An accounting period of twelve months.

FOB destination  Shipping terms specifying that the supplier pays the shipping cost to the buyer's destination.

FOB shipping point
  Shipping terms specifying that the buyer pays the shipping charge from the supplier's shipping point.

footing  A column total written in small pencil figures.

Form 940  The employer's unemployment tax return; it includes both federal and state unemployment taxes paid during the year.

Form 941  The employer's quarterly federal tax return; it reports the accumulated amounts of FICA and federal income tax withheld from employees' earnings for the quarter, as well as FICA tax owed by the employer.

Form W-2  A form that provides the employee with a summary of earnings and amounts withheld for federal, state, and local taxes; also called a wage and tax statement.

Form W-3  The Transmittal of Wage and Tax Statements, filed with the federal government to summarize the information contained on the employees' Forms W-2.

for-profit business  Business that operates to earn money for its owners.

free enterprise system  A system in which people are free to produce the goods and services they choose.

full disclosure
 Accounting guideline requiring that a financial report include enough information so that it is complete.


A
B C D E F G H I J K L M N O P Q R S T U V W X Y Z


G


general journal
   An all-purpose journal in which all the transactions of a business may be recorded.

general ledger  The group of accounts used by a business.

going concern
  The assumption that a business entity will continue to operate for an indefinite time.

gross earnings  The total amount of money an employee earns in a pay period.

gross profit on sales   The amount of profit made during the fiscal period before expenses are deducted; it is found by subtracting the cost of merchandise sold from net sales.


A
B C D E F G H I J K L M N O P Q R S T U V W X Y Z


H

horizontal analysis
  The comparison of the same items on financial statements for two or more accounting periods and the analysis of changes from one period to the next.


A
B C D E F G H I J K L M N O P Q R S T U V W X Y Z


I


income statement
  A report of the net income or net loss for a fiscal period; sometimes called a "profit and loss" statement.

Income Summary account  The account in the general ledger used to summarize the revenue and expenses for the fiscal period.

interest  The fee charged for the use of money.

interest rate  The fee charged for the use of the principal when a loan is made.

interest-bearing note payable
  A note that requires the face value plus interest to be paid at maturity.

internal controls
  Steps a business takes to protect cash (for example, limiting the number of persons handling cash).

inventory  The items of merchandise a business has in stock.

investments
 Those assets owned by a business but not used in the operation of the business.

invoice  A bill; a form that lists the quantity, description, unit price, and total cost of the items sold and shipped to a buyer.

issue date
  The date on which a promissory note is written.


A
B C D E F G H I J K L M N O P Q R S T U V W X Y Z


J


journal
 A chronological record of all of the transactions of a business.

journalizing  The process of recording business transactions in a journal.


A
B C D E F G H I J K L M N O P Q R S T U V W X Y Z


K

 

 


A
B C D E F G H I J K L M N O P Q R S T U V W X Y Z


L


last-in, first-out method
 An inventory costing method that assumes that the last items purchased are the first items sold.

ledger  A book or file containing a separate page for each business account; serves as a permanent record of financial transactions.

ledger account form  The accounting stationery used to record financial information about specific accounts.

liabilities  Amounts owed to creditors; the claims of creditors to the assets of the business.

lifestyle  The way you use your time, energy, and resources.

liquidity ratio  The measure of a business's ability to pay its current debts as they become due and to provide for unexpected needs of cash.

long-term liabilities
 Debts that are not required to be paid within the next accounting period.

loss  The result of a company's spending more than it receives in revenue.


A
B C D E F G H I J K L M N O P Q R S T U V W X Y Z


M


maker
  The person or business promising to repay the principal and interest when a loan is made.

management accounting  Reporting information to management, often referred to as accounting for internal users of accounting information.

manual accounting system   A system in which accounting information is recorded and processed by hand.

manufacturing business  A business that transforms raw materials into finished products through the use of labor and machinery.

market value  The current price that is being charged for similar items of merchandise in the market.

matching principle  Principle stating that expenses are compared to revenues for the same period.

materiality  An accounting guideline stating that relatively important data should be included in financial reports.

maturity date  The due date of a promissory note; the date on which the principal and interest must be paid.

maturity value  The principal plus interest on a note that must be paid on the maturity date.

memorandum  A brief written message that describes a transaction that takes place within a business.

merchandise   Goods bought for resale to customers.

merchandising business  A business that buys goods (for example, books or clothing) and then sells those goods for a profit.

mutual agency
  The characteristic of partnerships under which any partner can enter into agreements for the business that are binding on all other partners.


A
B C D E F G H I J K L M N O P Q R S T U V W X Y Z


N


net income
 The amount of revenue that remains after expenses for the period are subtracted.

net loss  The amount by which total expenses exceed total revenue.

net pay   The amount left after total deductions are subtracted from gross earnings.

net purchases  The total cost of all merchandise purchased during a fiscal period, less any purchases discounts, returns, or allowances.

net sales  The amount of sales for the period less any sales discounts, returns, or allowances.

networking  Making contacts with people to share information and advice.

noninterest-bearing note payable  A note from which the interest is deducted at the time the note is made; a promissory note that has no stated rate of interest on its face.

normal balance  The increase side of an account: assets, debit side; liabilities and capital, credit side. The word normal used here means usual.

note payable
 A promissory note issued to a creditor.

note receivable  A promissory note that a business accepts from a customer or other person who owes the business money.

not-for-profit organization
  An organization that does not operate for the purpose of making a profit.

NSF check  A check returned to the depositor by the bank because there are not sufficient funds in the drawer's checking account to cover the check.


A
B C D E F G H I J K L M N O P Q R S T U V W X Y Z


O


on account
 When a business or individual buys an item on credit.

online  The direct link-up of a terminal or cash register to a centralized computer system.

operating expenses  The cash spent or assets consumed to earn revenue for a business; operating expenses do not include federal income tax expense.

operating income  The taxable income of a corporation.

other expense  A non-operating expense; an expense that does not result from the normal operations of the business.

other revenue  Non-operating revenue that a business receives from activities outside its normal operations.

outstanding checks  Checks that have been written but have not yet been presented to the bank for payment.

outstanding deposits  Deposits that have been made and recorded in the checkbook but do not appear on the bank statement.

overtime rate  Employers are required to pay overtime when employees covered by these laws work more than 40 hours per week.

owner's equity
 Owner's claims to the assets of the business.


A
B C D E F G H I J K L M N O P Q R S T U V W X Y Z


P

packing slip
  A form that lists the items included in the shipment.

Paid-in Capital in Excess of Par   The account that represents the amount of cash received by a corporation over the stock's par value.

par value   The dollar amount assigned to each share of stock when the corporation's charter is approved; used to determine the amount credited to the capital stock account.

partnership  Business owned by two or more persons, called partners, who agree to operate the business as co-owners.

partnership agreement   A written document that sets out the terms under which the partnership will operate.

partnership liquidation  Ending a partnership involves winding up the affairs of the partnership business.

pay period   The amount of time over which an employee is paid.

payee   The person or business to whom a check is written or a note is payable.

payroll   A list of the employees and the payments due to each employee for a specific pay period.

payroll  clerk Responsible for preparing the payroll.

payroll register  A form that summarizes information about employees' earnings for each pay period.

Payroll Tax Expense   Account where the employer's payroll taxes are recorded.

percentage of net sales method   A method of estimating uncollectible debts expense in which a business assumes that a certain percentage of each year's net sales will be uncollectible.

periodic inventory system  An inventory system in which the number of items on hand is determined by a physical count.

permanent accounts
 Accounts that are continuous from one accounting period to the next; balances are carried forward to the next period (for example, assets, liabilities, and owner's capital accounts).

perpetual inventory system
 An inventory system in which a constant, up-to-date record of the amount of merchandise on hand is maintained.

personal interest tests  Tests that uncover personal preferences you can use to research potential careers and determine which ones match your particular interests.

personality   A set of unique qualities that makes us different from all other people.

petty cash disbursement   A payment made from the petty cash fund.

petty cash fund  Cash kept on hand for making small, incidental cash payments.

petty cash register   A record of all disbursements made from the petty cash fund.

petty cash requisition   A form requesting money to replenish the petty cash fund.

petty cash voucher  A form that provides proof of payment from the petty cash fund.

petty cashier
 The person responsible for maintaining the petty cash fund and for making petty cash disbursements.

physical inventory  An actual count of all the merchandise on hand and available for sale.

plant assets  Long-lived assets that are used in the production or sale of other assets or services over several accounting periods.

point-of-sale terminal   Electronic cash register.

post-closing trial balance  Prepared to verify that total debits equal total credits after the closing entries are posted.

posting   The process of transferring information from the general journal to individual general ledger accounts, the fourth step in the accounting cycle.

preferred stock   Stock whose owners have certain privileges over common stockholders.

premium  The amount paid for insurance.

principal   The amount of money being borrowed on a promissory note.

proceeds   The amount of cash actually received by a borrower on a non-interest-bearing note payable.

processing stamp  A stamp placed on a creditor's invoice that outlines the steps to be followed in processing the invoice for payment.

profit   The amount of revenue earned above the expenses incurred to operate the business.

profitability ratio  Ratios used to evaluate the earnings performance of a business during the accounting period (for example, return on common stockholders' equity).

promissory note  A written promise to pay a certain amount of money at a specific future time.

property  Items of value that are owned or controlled by a business; economic resources of a business.

property rights  Creditors' and owners' financial claims to the assets of a business.

proving cash   The process of determining whether the amounts of cash recorded in the accounting records of a business and in its checkbook agree.

proving the ledger   Adding all debit balances and all credit balances of ledger accounts and then comparing the two totals to see whether they are equal.

proxy   A document that transfers a stockholder's voting rights to someone else.

public accounting  Accounting services that range from tax preparation to merger and acquisition consultation; a variety of accounting services offered to businesses.

publicly held corporation  A corporation whose stock is widely held, has a large market, and is usually traded on a stock exchange.

purchase order   A written offer to a supplier to buy certain items.

purchase requisition   A written request that a certain item or items be ordered.

Purchases account  The account used to record the cost of merchandise purchased during a fiscal period.

purchases allowances   A price reduction given when a business keeps unsatisfactory merchandise it has bought.

purchases discount   Term used by the buyer to refer to a cash discount offered for early payment.

purchases journal  A special journal used to record all transactions in which items are bought on account.

purchases returns   The return to the supplier for full credit of merchandise bought on account.


A
B C D E F G H I J K L M N O P Q R S T U V W X Y Z


Q

quick ratio
  A measure of the relationship between short-term assets and current liabilities.


A
B C D E F G H I J K L M N O P Q R S T U V W X Y Z


R

ratio analysis
  Involves the comparison of two amounts on a financial statement and the evaluation of the relationship between these amounts.

receipt  A form that serves as a record of cash received.

reconciling the bank statement   The process of determining any differences between a bank statement balance and a checkbook balance.

relevance  A characteristic of accounting requiring that information "make a difference" in reaching a business decision.

reliability   A characteristic requiring that accounting information be reasonably free of bias and error.

report form   A format for preparing the balance sheet in which the classifications of accounts are listed one under another.

restrictive endorsement  A check endorsement that restricts or limits how a check may be handled (for example, "For Deposit Only").

retailer   A business that sells to the final user, the consumer.

retained earnings
  Earnings held by a corporation and not paid to stockholders as a return on their investment.

return on sales   The portion of each sales dollar that represents profit. To calculate this ratio, divide net income by sales.

revenue  Income earned from the sale of goods and services.

revenue recognition  Accounting principle that states that revenue is recognized and recorded on the date it is earned even if cash has not been received.

ruling  A single line drawn under a column of figures to signify that the entries above the rule are to be added or subtracted; a double rule under an amount signifies a total.


A
B C D E F G H I J K L M N O P Q R S T U V W X Y Z


S


Salaries Expense
  The expense account used to record employees' earnings.

salary   A fixed amount of money paid to an employee for each pay period.

sale on account   The sale of merchandise that will be paid for at a later date.

Sales   A revenue account to record the amount of the merchandise sold.

sales allowance  A price reduction granted for damaged goods kept by the customer.

sales discount   A cash discount.

sales journal  A special journal used to record only the sale of merchandise on account.

sales return   Any merchandise returned for credit or a cash refund.

sales slip   A form that lists the details of a sale.

sales tax   A tax levied by a city or state on the retail sale of merchandise.

schedule of accounts payable  A list of all creditors in the accounts payable ledger, the balance in each account, and the total amount owed to all creditors.

schedule of accounts receivable  A list of each charge customer, the balance in the customer's account, and the total amount due from all customers.

selling expenses  Expenses incurred in selling or marketing the merchandise or services sold by a business.

service business  Provides a needed service for a fee.

signature card   A card containing the signature(s) of the person(s) authorized to write checks on a checking account.

skills   Activities that you perform well.

slide error  Accidental misplacement of a decimal point in an amount.

sole proprietorship   A business owned by one person.

source document   A paper prepared as evidence that a transaction occurred.

special journals
  Multicolumn journals that have columns reserved for the recording of specific types of transactions.

specific identification method  An inventory costing method in which the exact cost of each item in inventory is determined and assigned; used most often by businesses that have a low unit volume of merchandise with high unit prices.

State Unemployment Tax Act (SUTA)  Requires employers to pay unemployment taxes.

statement of changes in owner's equity  A financial statement prepared to summarize the effects of business transactions on the capital account.

statement of changes in partners' equity  A financial statement that reports the changes in each partner's capital account as a result of business operations.

statement of retained earnings  A statement that reports the changes that have taken place in the Retained Earnings account during the fiscal period; prepared as a supporting document for the balance sheet.

statement of stockholders' equity  A statement that reports the changes that have taken place in all of the stockholders' equity accounts during the period.

stockholders' equity   The value of the stockholders' claims to the assets of the corporation.

stop payment order   A demand by the drawer that the bank not honor a certain check.

straight-line depreciation  A method of equally distributing the cost of a plant asset over the asset's estimated useful life.

subsidiary ledger  A ledger that is summarized in a controlling account in the general ledger.


A
B C D E F G H I J K L M N O P Q R S T U V W X Y Z


T


T account
  An account shaped like a "T" that is used for analyzing transactions.

temporary capital accounts  Accounts used to record information during the fiscal period that will be transferred to a permanent capital account at the end of the period.

term   The length of time the borrower has to repay a promissory note.

tickler file  A file that contains a folder for each day of the month; invoices are placed in the folders according to their due dates.

time card   A record of the time an employee arrives at work, the time the employee leaves, and the total number of hours worked each day.

transposition error  Occurs when two digits within an amount are accidentally reversed, or transposed.

trial balance   A proof of the equality of total debits and credits, the fifth step in the accounting cycle.


A
B C D E F G H I J K L M N O P Q R S T U V W X Y Z


U

uncollectible accounts
  An account receivable that cannot be collected, sometimes called a bad debt.

unemployment taxes
  Taxes collected to provide funds for workers who are temporarily out of work; usually paid only by the employer.


A
B C D E F G H I J K L M N O P Q R S T U V W X Y Z


V

values
  Concepts or ideas held important or worthwhile.

vertical analysis  A method of analysis that requires the restating of each dollar amount reported on a financial statement as a percentage of a base amount reported on the same statement.

voiding a check  Canceling a check by writing the word "Void" across the front in ink.


A
B C D E F G H I J K L M N O P Q R S T U V W X Y Z


W


wage
 An amount of money paid to an employee at a specified rate per hour worked.

weighted average cost method   An inventory costing method in which all purchases of an item are added to the beginning inventory of that item; the total cost is then divided by the total units to obtain the average cost per unit.

wholesaler  A business that sells to retailers.

withdrawal
  The removal of cash or another asset from the business by the owner for personal uuse.

work sheet  A working paper used to collect information from ledger accounts for use in completing end-of-fiscal-period work.

working capital  The amount by which current assets exceed current liabilities.


A
B C D E F G H I J K L M N O P Q R S T U V W X Y Z


X




A
B C D E F G H I J K L M N O P Q R S T U V W X Y Z


Y



A
B C D E F G H I J K L M N O P Q R S T U V W X Y Z


Z

Student Site