Term
| the process of recording, summarizing, analyzing, and interpreting financial (money-related) activities to permit individuals and organizations to make informed judgments and decisions |
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Definition
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Term
| the equation that expresses the relationship between the accounting elements in a simple mathematical formula: assets = liabilities + owner's equity; also referred to as the basic accounting equation |
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Definition
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Term
| a period for which accounting records are maintained, typically a year but can be as short as a month |
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Definition
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Term
| the liability that results from purchasing goods or services on credit |
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Definition
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Term
| the asset arising from selling goods or services on credit to customers |
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Definition
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Term
| an item with a money value owned by a business |
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Definition
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Term
| a listing of the firm's assets, liabilities, and owner's equity at a specific point in time; also referred to as statement of financial position and position statement |
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Definition
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Term
| an organization that operates with the objective of earning a profit |
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Definition
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Term
| the principle stating that, for accounting purposes, a business is a distinct economic entity or unit that is separate from its owner and from any other business; requires that transactions of a business be recorded separately from the personal transactions of the business owner |
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Definition
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Term
| an asset including currency (paper money), coins, checks, and money orders made payable to the business |
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Definition
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Term
| the principle that states that an asset should be recorded at its actual cost, even if the true market value of the asset is more or less than the price paid |
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Definition
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Term
| a business or person to whom a debt is owed |
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Definition
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Term
| the principle stating that all business transactions are recorded as having at least two effects on the basic accounting elements (assets, liabilities, and owner's equity) |
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Definition
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Term
| a physical asset used by a business in its operations |
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Definition
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Term
| principles of moral conduct that guide the behavior of individuals and businesses |
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Definition
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Term
| the costs of operating a business; does not provide a future benefit to the business and is thus a reduction in owner's equity |
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Definition
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Term
| summaries of financial activities |
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Definition
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Term
| a summary of a business's revenue and expenses for a specific period of time, such as a month or a year; also referred to as earnings statement, operating statement, statement of operations, and profit and loss (P & L) statement |
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Definition
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Term
| a debt owed to a creditor, a party outside of the business |
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Definition
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Term
| a type of business organization that combines features of a corporation and those of a partnership or sole proprietorship |
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Definition
| limited liability company (LLC) |
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Term
| a business that produces a product to sell to its customers to earn a profit |
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Definition
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Term
| excess of revenue over total expenses; also referred to as net profit or net earnings; the opposite of net loss |
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Definition
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Term
| excess of total expenses over revenue; the opposite of net income |
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Definition
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Term
| a formal written promise to pay a specified amount at a definite future date |
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Definition
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Term
| the difference between assets and liabilities; also referred to as capital, proprietorship, and net worth |
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Definition
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Term
| a business co-owned by two or more people |
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Definition
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Term
| a principle that states that revenue should be recorded when it is earned, even though cash may not be collected until later |
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Definition
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Term
| income earned from carrying out the major activities of a firm |
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Definition
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Term
| a law, passed by Congress, requiring companies to certify the accuracy of their financial information and intended to restore the public's confidence in the financial statements of companies |
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Definition
| Sarbanes-Oxley Act of 2002 |
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Term
| a business that performs services for customers to earn a profit |
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Definition
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Term
| a change that occurs when one asset is exchanged for another asset, such as when supplies are purchased for cash; occurs when one asset goes up in amount and another goes down |
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Definition
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Term
| a business owned by one person |
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Definition
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Term
| a summary of the changes that have occurred in owner's equity during a specific period of time, such as a month or year; also referred to as a capital statement |
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Definition
| statement of owner's equity |
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Term
| short-term physical assets needed in the operation of a business |
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Definition
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Term
| capable of being touched; the quality of a physical asset |
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Definition
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Term
| any activity that changes the value of a firm's assets, liabilities, or owner's equity |
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Definition
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Term
| the removal of business assets for the owner's personal use |
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Definition
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Term
| an individual form used to record increases and decreases in a specific asset, liability, or owner’s equity item |
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Definition
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Term
| the difference between total debits and total credits to an account; determined by footing (adding) the debit side, footing the credit side, and subtracting the smaller total from the larger |
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Definition
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Term
| to enter an amount on the right, or credit, side of the account; abbreviated as Cr. |
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Definition
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Term
| a balance that occurs when the amount on the credit side of an account is greater than the amount on the debit side |
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Definition
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Term
| to enter an amount on the left, or debit, side of the account; abbreviated as Dr. |
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Definition
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Term
| a balance that occurs when the amount on the debit side of an account is greater than the amount on the credit side |
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Definition
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Term
| A system in which each transaction is recorded as having at least two effects on the accounting elements; the sum of all debits must equal the sum of all credits |
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Definition
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Term
| a temporary owner's equity account used to record a business owner's withdrawals of cash or other assets from the business for personal use |
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Definition
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Term
| the total of the debit column or credit column of an account |
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Definition
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Term
| a grouping of all accounts a company uses |
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Definition
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Term
| the increase side of an account or where you would expect to find the balance of that account |
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Definition
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Term
| a form of account with separate debit and credit sides |
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Definition
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Term
| skeleton version of the standard form of an account |
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Definition
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Term
| Accounts whose balances will be transferred to the owner's capital account at the end of the accounting period; examples include expense accounts, revenue accounts, and the owner's drawing account |
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Definition
| temporary owner's equity accounts |
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Term
| a listing of all ledger accounts and their balances to test the equality of debits and credits in the ledger at the end of an accounting period, usually at the end of each month |
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Definition
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Term
| the sequence of steps and procedures used to process and summarize accounting data during an accounting period |
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Definition
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Term
| a standard ledger account form expanded to include two balance columns for keeping a running, or continuous, balance; also called the four-column account form |
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Definition
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Term
| the ledger to which amounts are transferred (posted) from the journal |
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Definition
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Term
| the journal in which transactions are first formally recorded |
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Definition
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Term
| a directory or listing of accounts in the ledger |
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Definition
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Term
| an entry requiring three or more accounts |
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Definition
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Term
| an entry used to correct certain types of errors in the ledger |
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Definition
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Term
| a ledger account number in the posting reference (P.R.) column of the journal and the journal page number in the P.R. column of the ledger account |
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Definition
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Term
| the basic form of journal that has two money columns |
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Definition
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Term
| a record in which business transactions are recorded in the order that they occur (chronological order, by order of date) |
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Definition
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Term
| the process of recording transactions in a journal |
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Definition
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Term
| an addition or subtraction mistake |
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Definition
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Term
| the process of transferring transactions from the journal to the ledger |
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Definition
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Term
| an incorrect transfer from the journal to an account or from the ledger to the trial balance |
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Definition
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Term
| the principle that proper accounting procedures have to be strictly followed only for events and transactions that would have an effect on a business's financial statements |
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Definition
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Term
| the principle that source documents should form the foundation for recording business transactions |
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Definition
| principle of objective evidence |
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Term
| a mistake made in a journal entry |
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Definition
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Term
| a type of posting error caused by an incorrectly placed decimal point, such as entering 100 for 1,000 |
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Definition
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Term
| business documents or papers that prove business transactions occurred; the basis for journal entries |
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Definition
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Term
| a type of posting error caused by the reversal of digits, such as entering 240 for 420 |
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Definition
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Term
| an entry made at the end of an accounting period to bring the balance of an account up to date |
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Definition
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Term
| the difference between an asset's cost and its accumulated depreciation |
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Definition
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Term
| an account whose balance is opposite the asset to which it relates; an account with a credit balance, because it is opposite to an asset account having a debit balance |
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Definition
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Term
| an allocation process in which the cost of a long-term asset (except land) is divided over the periods in which the asset is used in the production of the business's revenue; always recorded by debiting the Depreciation Expense account and crediting the Accumulated Depreciation account |
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Definition
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Term
| adjusting entries that update the ledger without involving parties outside the business |
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Definition
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Term
| a rule of accounting that requires that revenue and expenses be recorded in the accounting period in which they occur; a rule stating that an accurate net income or net loss for an accounting period be reported by offsetting revenue earned by the expenses that were necessary to produce that revenue |
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Definition
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Term
| a fee paid for insurance coverage that will benefit the business in the future |
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Definition
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Term
| a popular method of calculating depreciation that yields the same amount of depreciation for each full period an asset is used |
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Definition
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Term
| an informal working paper used by the accountant to organize data for the financial statements and lessen the possibility of overlooking an adjustment |
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Definition
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Term
| the basis of accounting that requires that revenue is recorded when earned, no matter when cash is received, and that expenses are recorded when incurred, no matter when cash is paid |
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Definition
| accrual basis of accounting |
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Term
| a basis of accounting where revenue is recorded only when cash is received, and expenses are recorded only when cash is paid |
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Definition
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Term
| an account used to summarize the balances of other accounts |
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Definition
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Term
| entries made at the end of an accounting period to transfer the balances of the temporary accounts to the owner's capital account |
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Definition
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Term
| the process of transferring the balances of temporary accounts to the owner's capital account |
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Definition
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Term
| the period of time that covers a complete accounting cycle |
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Definition
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Term
| a fiscal period covering 12 months but not necessarily coinciding with the calendar year |
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Definition
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Term
| a clearing account used to summarize the balances of revenue and expense accounts that is used only at the end of an accounting period and is opened and closed during the closing process |
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Definition
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Term
| a basis of accounting where revenue is recorded only when cash is received and expenses are recorded only when cash is paid; however, adjustments are made for expenditures for items having an economic life of more than one year-such as equipment, prepaid insurance, and large purchases of supplies |
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Definition
| modified cash basis of accounting |
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Term
| a fiscal year ending at a business's lowest point of activity |
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Definition
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Term
| accounts such as assets, liabilities, and owner's capital whose balances will be carried into the next accounting period; accounts whose balances are not closed; also referred to as real accounts |
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Definition
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Term
| a trial balance prepared after closing entries have been posted and consisting only of permanent accounts; also referred to as an after-closing trial balance |
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Definition
| post-closing trial balance |
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Term
| accounts whose balances are not carried over from one accounting period to another but instead are closed to the owner's capital account at period-end; revenue, expense, and drawing accounts; also referred to as nominal accounts |
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Definition
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Term
| a number printed on checks and deposit slips that identifies the bank and the area in which the bank is located as well as other information |
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Definition
| American Bankers Association (ABA) transit number |
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Term
| a nonessential business record that is helpful in maintaining records that are essential |
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Definition
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Term
| an amount of cash on deposit with a bank that the bank must pay at the written order of the depositor |
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Definition
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Term
| the process of bringing the cash balance reported on the bank statement into agreement with the balance in the depositor's checkbook; also referred to as reconciling the bank statement |
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Definition
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Term
| the bank's summary of checking account transactions, usually prepared monthly and mailed to the depositor (or made available online) |
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Definition
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Term
| an endorsement consisting only of a depositor's signature that allows anyone who possesses a check to cash it |
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Definition
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Term
| a check that has been paid by the bank out of the depositor's account |
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Definition
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Term
| an amount of cash in the cash register that is more than the amount indicated by the cash sales; recorded in the Cash Short and Over account |
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Definition
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Term
| an amount of cash in the cash register that is less than the amount indicated by the cash sales; recorded in the Cash Short and Over account |
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Definition
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Term
| an account used to bring the Cash account into agreement with the actual amount of cash on hand and can be used by businesses that have many cash transactions and thus often have small amounts of cash over or under what the cash register shows |
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Definition
| Cash Short and Over account |
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Term
| an amount of money that is maintained in the cash register for making change for cash customers; recorded in the Change Fund account |
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Definition
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Term
| an asset account in which the amount of the change fund is recorded |
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Definition
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Term
| a written order directing a bank to pay a specified sum of money to a designated person or business |
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Definition
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Term
| part of a check that remains in the checkbook as a permanent record of the check; often referred to as a stub |
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Definition
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Term
| a bound book of checks with stubs; the depositor's record of the checking account |
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Definition
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Term
| a deposit made and appearing in the checkbook but not appearing on the bank statement; also referred to as an outstanding deposit |
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Definition
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Term
| a form that is prepared when coin, currency, or checks are deposited in a bank account indicating the depositor's name and account number and summarizes the amount deposited; also referred to as a deposit ticket |
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Definition
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Term
| the business or person under whose name a checking account is opened |
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Definition
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Term
| the bank on which a check is drawn |
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Definition
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Term
| a person or business who writes a check |
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Definition
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Term
| the movement of cash by electronic communication rather than by paper documents (money, checks, money orders, etc.) |
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Definition
| electronic funds transfer (EFT) |
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Term
| a signature or stamp on the back of a check that transfers ownership of the check to the bank or another person |
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Definition
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Term
| an endorsement using the phrase "Pay to the order of" followed by the name of the business or person to whom the check is being transferred, thus allowing only the specified business or person to cash the check |
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Definition
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Term
| the procedures used within a company to protect its assets |
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Definition
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Term
| a check drawn against an account in which there are not sufficient funds; also referred to as an uncollectible, or bad check |
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Definition
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Term
| a check that was recorded in the checkbook but does not appear on the bank statement because it did not reach the bank's accounting department in time to be included on the statement |
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Definition
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Term
| the business or person to whom a check is made payable |
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Definition
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Term
| an asset account in which the amount of the petty cash fund is recorded |
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Definition
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Term
| a small amount of cash kept in the office for making small payments for items such as postage and office supplies; recorded in the Petty Cash account |
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Definition
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Term
| a nonessential business record used to record payments from the petty cash fund and is summarized and used as a basis for a journal entry at the end of the month; a type of auxiliary record |
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Definition
| petty cash payments record |
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Term
| a form showing the amount of the payment, the purpose, and the account to be debited used when payment is made from the petty cash fund |
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Definition
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Term
| the person designated to disburse money from the petty cash fund; recorded in the Petty Cash account |
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Definition
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Term
| a not-for-profit corporation created by the Sarbanes-Oxley Act of 2002 to oversee the auditors of public companies in order to protect the interest of investors and further the public's interest in the preparation of fair and reliable financial reports |
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Definition
| Public Company Accounting Oversight Board (PCAOB) |
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Term
| an endorsement using a phrase "For deposit only," which limits or restricts any further transfer of the check |
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Definition
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Term
| an account maintenance fee charged by the bank and deducted directly from the depositor's balance; also referred to as a bank fee |
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Definition
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Term
| a form kept by a bank documenting personal information and the signature of the person(s) authorized to write checks on a bank account |
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Definition
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Term
| the action of replacing the amount paid from the petty cash fund, usually done at the end of the month |
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Definition
| to replenish the petty cash fund |
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Term
| a subsidiary ledger that lists the individual accounts of creditors; also referred to as the creditors' ledger |
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Definition
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Term
| a discount offered by a seller to encourage early payment by a buyer; to the seller, referred to as a sales discount; to the buyer, referred to as a purchases discount |
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Definition
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Term
| a special journal used to record all cash payments, including those made by check; also referred to as the cash disbursements journal |
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Definition
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Term
| an account in the general ledger that summarizes accounts in a related subsidiary ledger |
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Definition
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Term
| accounts that are presented on the income statement; used to determine the cost of goods sold to customers |
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Definition
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Term
| a written statement that indicates a seller's willingness to reduce the amount owed by a buyer |
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Definition
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Term
| the buyer's written request to a seller for credit for a merchandise return or allowance |
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Definition
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Term
| a shipping term that means that the seller is responsible for all freight costs until the goods reach their destination |
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Definition
| FOB (free on board) destination |
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Term
| a shipping term that means that the buyer is responsible for all freight costs while the goods are in transit |
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Definition
| FOB (free on board) shipping point |
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Term
| cost account in which charges for freight on incoming merchandise are recorded; also referred to as Transportation In |
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Definition
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Term
| the main ledger; the ledger containing the accounts needed to prepare the financial statements |
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Definition
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Term
| the bill the seller of goods sends to the buyer of the goods that identifies and describes the goods and how they will be delivered; to the seller, referred to as the sales invoice; to the buyer, referred to as a purchase invoice |
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Definition
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Term
| the price appearing in a price catalog issued by the seller |
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Definition
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Term
| goods held for sale to customers; also referred to as merchandise inventory and stock in trade |
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Definition
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Term
| a business that buys goods from other companies and sells those goods to customers; also referred to as a trading business |
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Definition
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Term
| a written or online form sent from a buyer of goods to the seller specifying the quantity and description of the goods to be purchased |
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Definition
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Term
| a written request for goods to be purchased; usually prepared by a department head or manager and sent to a firm's purchasing department |
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Definition
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Term
| a temporary owner's equity account used to record the cost of merchandise purchased for resale; also referred to as the Merchandise Purchases account or the Purchases of Merchandise account |
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Definition
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Term
| a contra purchases account used to record discounts received for prompt payment of merchandise invoices |
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Definition
| Purchases Discounts account |
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Term
| buyer's term for the discounts offered by a seller to encourage early payment |
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Definition
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Term
| the buyer's copy of the bill that identifies and describes the sold goods and how they will be delivered |
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Definition
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Term
| a special journal used only to record credit purchases of merchandise; sometimes a multicolumn journal used to record all credit purchases, not just merchandise |
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Definition
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Term
| returns of merchandise purchases or price reductions received for damaged or irregular merchandise |
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Definition
| purchases returns and allowances |
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Term
| a contra purchases account used to record returns and allowances on merchandise purchases |
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Definition
| Purchases Returns and Allowances account |
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Term
| a form prepared by a buyer to verify that goods have been received and accepted |
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Definition
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Term
| a business such as a grocery store, drugstore, and restaurant, that sells directly to consumers |
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Definition
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Term
| a seller's term for the discounts offered to encourage early payment by a buyer |
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Definition
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Term
| the seller's copy of the bill that identifies and describes the sold goods and how they will be delivered |
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Definition
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Term
| a listing of the individual creditor account balances in the accounts payable ledger |
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Definition
| schedule of accounts payable |
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Term
| a journal used by businesses to record transactions that are similar in nature; examples are the purchases journal and the cash payments journal; also referred to as a special-purpose journal |
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Definition
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Term
| a ledger that contains only one type of account such as the accounts payable ledger |
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Definition
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Term
| percentage reductions from the list price of merchandise |
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Definition
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Term
| a business that purchases goods in bulk from manufacturers and sells the goods to retailers, other wholesalers, schools and other nonprofit institutions, and, at times, directly to consumers |
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Definition
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Term
| an asset account that shows the total dollar amount due from credit customers |
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Definition
| Accounts Receivable account |
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Term
| an asset account used to record the amount due from nonbank credit card sales |
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Definition
| Accounts Receivable-Credit Cards account |
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Term
| a subsidiary ledger containing only accounts of credit customers; also referred to as the customers' ledger |
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Definition
| accounts receivable ledger |
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Term
| a special journal used to record all receipts of cash, regardless of the source |
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Definition
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Term
| a variation of the sales ticket; the total of the tape serves as the source document for later journal entries |
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Definition
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Term
| an expense account that is used to record discounts paid when receipts for credit card sales are deposited with the bank that issued the card (such as VISA or MasterCard) or with the credit card company that issued the card (such as American Express) |
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Definition
| Credit Card Expense account |
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Term
| the amount of time a seller allows a credit customer to pay for a purchase credit period |
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Definition
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|
Term
| the terms for payment set by a seller of goods or services; includes the amount of time before payment is due and the rate of discount (if any) for paying early |
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Definition
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|
Term
| a payment system in which customers pay a percentage of their account plus finance charges on a monthly basis |
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Definition
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|
Term
| a revenue account used to record the price of merchandise sold to customers |
|
Definition
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|
Term
| a contra revenue account with a normal debit balance used to record cash discounts granted to credit customers for prompt payment |
|
Definition
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|
Term
| a special journal used only to record credit sales of merchandise |
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Definition
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|
Term
| a document prepared when an order is received from a customer |
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Definition
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|
Term
| a contra revenue account with a normal debit balance used to record returns from and allowances to customers |
|
Definition
| Sales Returns and Allowances account |
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Term
| a tax on the retail price of goods sold, collected by the merchant and paid to the governmental body that levies the tax sales tax.mp3 |
|
Definition
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|
Term
| a liability account used to record sales taxes on retail purchases |
|
Definition
| Sales Tax Payable account |
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Term
| a form prepared by the seller when a cash sale is made that describes the goods sold, identifies the customer, and serves as a source document for recording the sale; also referred to as the sales slip |
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Definition
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|
Term
| a listing of the balances in the accounts receivable ledger |
|
Definition
| schedule of accounts receivable |
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Term
| earnings that are unpaid (and unrecorded) and owed to employees at the end of an accounting period; also referred to as accrued wages |
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Definition
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Term
| the dollar value of merchandise that is on hand at the beginning of an accounting period |
|
Definition
| beginning merchandise inventory |
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Term
| the dollar value of merchandise that is on hand at the end of an accounting period ending merchandise.mp3 |
|
Definition
| ending merchandise inventory |
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Term
| a count taken of the merchandise on hand at the end of an accounting period |
|
Definition
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|
Term
| an asset account that shows the value of goods (inventory) on hand at a given moment (usually at the beginning or end of the accounting period) |
|
Definition
| Merchandise Inventory account |
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Term
| a balance sheet that divides the assets and liabilities sections into the following subsections: current assets and plant assets, and current liabilities and long-term liabilities |
|
Definition
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Term
| an income statement divided into the following sections: revenue, cost of goods sold, operating expenses, income from operations, and other income and expenses. |
|
Definition
| classified income statement |
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|
Term
| the cost of merchandise sold to customers during the accounting period; an amount determined by the formula: Beginning Merchandise Inventory + Net Purchases of Merchandise = Cost of Goods Available for Sale - Ending Merchandise Inventory = Cost of Goods Sold |
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Definition
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|
Term
| cash and other assets that through normal operations are expected to be sold, converted to cash, used up, or expired usually within one year of the balance sheet date current |
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Definition
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|
Term
| short-term debt that is due for payment within one year; examples include accounts payable, salaries payable, sales tax payable, and the current portion of notes payable |
|
Definition
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Term
| current assets divided by current liabilities; a measure of a company's ability to pay current liabilities from current assets |
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Definition
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Term
| expenses related to running a firm's office, overall administrative expenses of the business or any other operating activities that do not involve the sale of merchandise; also referred to as administrative expenses |
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Definition
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Term
| the profit before subtracting the expenses of doing business; calculated by subtracting cost of goods sold from net sales; also referred to as gross margin |
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Definition
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Term
| gross profit minus operating expenses; also referred to as operating income |
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Definition
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Term
| financial statements prepared during the fiscal year for periods of less than 12 months such as monthly, quarterly, and semiannually |
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Definition
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Term
| refers to how quickly an asset can be turned into cash, used up, or expire; used in reference to assets, which are listed on the balance sheet in the order of their liquidity |
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Definition
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Term
| debt that will not come due for payment within one year; examples include long-term notes payable and mortgages payable |
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Definition
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Term
| the amount obtained by subtracting the amount of sales returns and allowances and the amount of sales discounts from the amount of sales |
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Definition
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Term
| the normal and expected expenses of operating a business |
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Definition
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Term
| expenses that are not directly associated with the normal operation of the business, such as interest expense |
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Definition
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Term
| revenue earned that is not directly associated with the normal operation of the business, such as income from vending machine sales and interest earned |
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Definition
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Term
| assets that are expected to be used in the business for more than one year; are acquired for use in the operation of a business, are not intended for resale to customers, and are tangible; examples include land, buildings, machinery and equipment, furniture, and automobiles; also referred to as fixed assets; property, plant, and equipment; or long-term assets |
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Definition
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Term
| a technique that allows the accountant to make the same entry to record the payment of accrued expenses that would have been made had two separate accounting periods not been involved; always recorded on the first day of the new accounting period |
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Definition
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Term
| operating expenses directly related to the sale of a firm's merchandise |
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Definition
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Term
| a reference to how long an asset will last; an organizing quality of a plant asset for listing on the balance sheet |
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Definition
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Term
| current assets minus current liabilities; a measure of a company's ability to meet short-term obligations |
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Definition
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Term
| the addition of columns of figures in different ways to check the accuracy of the totals |
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Definition
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Term
| a person who works under the direct control of an employer on a continuing basis |
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Definition
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Term
| a record maintained for each employee that contains basic employee information and a summary of payroll data for that employee |
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Definition
| employee's earnings record |
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Term
| a form filled out by each employee showing marital status and number of withholding allowances claimed |
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Definition
| Employee's Withholding Allowance Certificate (Form W-4) |
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Term
| an Internal Revenue Service publication containing federal income withholding tables for various payroll periods for married and single persons |
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Definition
| Employer's Tax Guide (Circular E) |
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Term
| an act passed by Congress in 1938, that as amended, establishes standards for minimum wage, overtime pay, child labor, required payroll record keeping, and equal pay for equal work regardless of sex; also referred to as the Wages and Hours Law |
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Definition
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Term
| a liability account used to record the amount of federal income taxes withheld from the earnings of employees; credited when taxes are withheld and debited when the taxes are sent in |
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Definition
| Federal Income Tax Payable account |
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Term
| an act that requires contributions by both the employer and the employee to the federal Social Security system; includes two component parts: OASDI (Old-Age, Survivors, and Disability Insurance) and HI (Hospital Insurance), or Medicare |
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Definition
| Federal Insurance Contributions Act (FICA) |
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Term
| a liability account used to record (1) the amount of HI taxes withheld from employees' earnings and (2) matched by the employer; an account credited when HI taxes are withheld (or imposed on the employer) and debited when the taxes are sent in |
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Definition
| FICA Tax Payable-HI account |
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Term
| a liability account used to record (1) the amount of OASDI taxes withheld from employee earnings and (2) the amount of OASDI taxes matched by the employer; an account credited when OASDI taxes are withheld from employees (and matched by the employer) and debited when the taxes are sent in |
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Definition
| FICA Tax Payable-OASDI account |
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Term
| an employee's earnings before any amount is deducted by the employer |
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Definition
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Term
| an individual who works for a fixed hourly rate, usually referred to as a wage |
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Definition
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Term
| a person who agrees to complete a specific job or task and determines the ways and methods of achieving that job or task. |
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Definition
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Term
| the lowest hourly rate that can be paid to employees who are covered by the Fair Labor Standards Act |
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Definition
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Term
| gross earnings minus payroll deductions; also referred to as net pay or take-home pay |
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Definition
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Term
| the maximum amount of earnings during a calendar year that is subject to OASDI taxes |
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Definition
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Term
| a minimum of one and one-half times the regular rate of pay for hours worked over 40 in a week; commonly referred to as time-and-a-half |
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Definition
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Term
| an amount withheld (deducted) from the pay of an employee |
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Definition
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Term
| a summary of the gross earnings, deductions, and net pay for all employees for a specific payroll period |
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Definition
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Term
| a method of payment in which workers are paid for each unit they produce, rather than by hours worked piece |
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Definition
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Term
| an individual who works for a fixed amount of pay for a definite period of time, such as a week, a month, or a year |
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Definition
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Term
| an expense account used to record the gross amount of the payroll; also referred to as Wages Expense account, Payroll Expense account, and Salaries and Commissions Expense account |
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Definition
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Term
| a fixed amount paid to employees for a certain period of time, such as a week, month, or year |
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Definition
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Term
| the common rate for overtime pay |
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Definition
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Term
| a fixed, hourly rate paid to an employee |
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Definition
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Term
| a method that uses government-issued tables to compute the amount of federal income tax to be withheld from employees |
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Definition
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Term
| an amount of earnings that is not subject to taxation; also referred to as an exemption |
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Definition
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Term
| an identifying number each business with employees must have if during any part of the year it employs one or more people; the business's equivalent of an individual's Social Security number |
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Definition
| employer identification number (EIN) |
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Term
| a form that must be filled out when FICA taxes and withheld federal income taxes are deposited in an authorized bank |
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Definition
| Form 8109, Federal Tax Deposit Coupon |
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Term
| an act requiring employers to pay into a fund designed to assist workers who are temporarily unemployed |
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Definition
| Federal Unemployment Tax Act (FUTA) |
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Term
| a form filed by the employer by January 31, summarizing quarterly FUTA deposits made during the preceding year |
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Definition
| Form 940, Employer's Annual Federal Unemployment Tax Return |
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Term
| a quarterly report that summarizes FICA taxes (employer and employee shares) and federal income taxes withheld during the quarter |
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Definition
| Form 941, Employer's Quarterly Federal Tax Return |
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Term
| a form issued by the employer to each employee by January 31 that contains a summary of the employee's earnings and tax deductions for the past year |
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Definition
| Form W-2, Wage and Tax Statement |
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Term
| an annual form employers file with the Social Security Administration to summarize employee earnings and tax deductions; filed with copy A of each employee's Form W-2 Form |
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Definition
| Form W-3, Transmittal of Wage and Tax Statements |
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Term
| a current liability account used to record the employer's obligation for federal unemployment taxes |
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Definition
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Term
| a 12-month period ending on June 30 of the prior year; employers look at the amount of FICA taxes (employee and employer shares) and withheld income taxes during the lookback period to determine their deposit status for the current year |
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Definition
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Term
| a system set up by the states to provide a lower SUTA rate for employers who maintain stable employment |
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Definition
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Term
| an operating expense account used to record the total payroll taxes imposed on the employer |
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Definition
| Payroll Tax Expense account |
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Term
| a law that requires employers to pay unemployment taxes (for the benefit of employees) to the states in which they conduct business |
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Definition
| State Unemployment Tax Act (SUTA) |
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Term
| a current liability account used to record the employer's obligation for state unemployment taxes |
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Definition
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Term
| the insurance employers must carry to provide protection for employees who suffer job-related illness or injury; payments recorded in the Worker's Compensation Insurance Expense account |
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Definition
| workers' compensation insurance |
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