Bookkeeping terms: Bookkeeping Terms and Phrases Accounting for Managers

Bookkeeping terms: Bookkeeping Terms and Phrases Accounting for Managers

Bookkeeping terms

Distribution of a CORPORATION’s earnings to stockholders in the form of CASH. Amount, net or CONTRA ACCOUNT balances, that an ASSET or LIABILITY shows on the BALANCE SHEET of a company. Funds used by a not-for-profit organization to account for all resources used for the development of a land improvement or building addition or renovation. Financial plan that serves as an estimate of future cost, REVENUES or both.

Capital gains have historically been taxed at a lower rate than ordinary income. The sequence of steps followed in the accounting process to measure business transactions and transform the measurements into FINANCIAL STATEMENTS for a specific period. A trial balance is a list of all the accounts in your business with their corresponding debits and credits.

Hope Scholarship Credit

Organization which is generally exempt from paying federal income tax. Exempt organizations include religious organizations, charitable organizations, social clubs, and others. Transfer of money, property or services in exchange for any combination of these items. Tax on the value of a DECENDENT’S taxable estate, typically defined as the decedent’s ASSETS less LIABILITIES and certain expenses which may include funeral and administrative expenses.

Bookkeeping terms

The study of the ways goods and services are produced, transported, sold, and used. Auction system in which the price of an item is gradually lowered until it meets a responsive bid and is sold. Arrangement in which the TRUSTEE has the authority to make INVESTMENT decisions and has control over investments within the framework of the TRUST instrument. This exists when a control necessary to meet the control objective is missing or an existing control is not properly designed so that even if the control operates as designed, the control objective is not always met. The postponement of the date that an expense already paid or incurred, or of a REVENUE already received, is entered in the LEDGER.

Finished Goods Inventory

An approach to cost-based pricing in which price is computed using a percentage of a product’s total costs and expenses. A rate that is used as a way of estimating and assigning OVERHEAD costs to products or jobs for each department or operating unit before the end of an accounting period. A CHECK that has been written by the drawer and deducted on his or her records but has not reached the bank for payment and is not deducted from the bank BALANCE by the time the bank issues its statement. Amount received from the sale or disposition of property, from a LOAN, or from the sale or issuance of securities after deduction of all costs incurred in the transaction. The lawyer hires the CPA to do the investigation and determine the amount of money stolen or understated. The sum of beginning inventory and the net cost of purchases during a period; the total goods available for sale to customers during an accounting period.

A worksheet is prepared when your trial balance doesn’t match the bank record. You then have to go in and make adjustments, which are tracked in the worksheet. A worksheet is usually a spreadsheet that includes your list of accounts, account balances, adjustments, and adjusted balances. Assets (aka what you own) minus your liabilities (aka what you owe) equals your equities.

Underlying Debt

(5) Also if the exercise price of an option grant differs from the closing market price per share on the grant date companies must include a description of the method for determining the exercise price. One of the basic FINANCIAL STATEMENTS that isGENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) required as part of a complete set of financial statements prepared in conformity with . It categorizes net cash provided or used during a period as operating, investing and financing activities, and reconciles beginning and ending cash and cash equivalents. Method of ACCOUNTING for SECURITIES whereby transactions are recorded on the date the securities settle by the delivery or receipt of securities and the receipt or payment of cash. A ratio for measuring the relative size of a company’s accounts receivable and the success of its CREDIT and collection policies during an accounting period.

  • A) Grant date – The date at which an employer and an employee reach a mutual understanding of the key terms and conditions of a share-based payment award.
  • Method of ACCOUNTING for SECURITIES whereby transactions are recorded on the date the securities settle by the delivery or receipt of securities and the receipt or payment of cash.
  • One well-known alternative is International Financial Reporting Standards (IFRS).In the United States, privately held companies are not required to follow GAAP, but many do.
  • GAAP are endorsed by organizations including the Financial Accounting Standards Board and the U.S.
  • A dividend is the distribution of a company’s earnings to its shareholders.

Tangible property held for sale, or materials used in a production process to make a product. Method that determines the discount rate at which the present value of the future CASH FLOWS will exactly equal investment outlay. Labor costs for production-related activities that cannot be connected with or conveniently and economically traced to a specific end product. Any cost that cannot be conveniently and economically traced to a specific department; a manufacturing cost that is not easily traced to a specific product and must be assigned using an allocation method.

Review Report

Acquisition of a controlling INTEREST in a company in a transaction financed by the issuance of DEBT instruments by the acquired entity. SECURITIES borrowed from a broker’s INVENTORY, other MARGIN accounts, or from other brokers, when a customer makes a short sale and the securities must be delivered to the buying customer’s broker. Price paid by a real estate limited partnership, when acquiring a lease, including legal fees and related expenses. Conveyance of land, buildings, equipment or other ASSETS from one person (LESSOR) to another (LESSEE) for a specific period of time for monetary or other consideration, usually in the form of rent. Any book containing original entries of daily financial transactions.