| A | B |
|---|
| Assets | What is owned in accounting, whether paid for or not. |
| Automatic deposit | Funds that can be automatically deposited using an American Bankers Association (ABA) electronic routing number and the account number in wich the money is to be deposited. |
| Automated teller machines (ATMs) | Machines located in banks, shopping malls, or supermarkets that enable bank customers to obtain cash and make deposits. |
| Automatic debits | Preauthorized automated transfer of funds for an individual or company from one account to another within the same financial institution. |
| Balance sheet | Summarizes the balances of assets, liabilities, and owner's equity and reports what the business is worth on any given day. |
| Bank draft | Check drawn by the bank on its own funds. |
| Bank money order | Similar to a postal money order but obtained from a bank. |
| Bank reconciliation | Comparison of the final balance on a bank statement with the checkbook balance, then accounting for any difference. |
| Blank endorsement | The signature of the payee on the back of a check. |
| Budget | The budgeting process expressed in financial terms. |
| Budget report | Provides the basis for analyzing and revising spending activites of a comany by comparing actual sales or costs with the figures that were budgeted for those sales or costs. |
| Budgeting | The process of planning future business operations an defining those plans in a formal report. |
| Canceled checks | Checks paid by the bank. |
| Cashier's check | Also called treasurer's check or offical check, a check written by an authorized officier of the bank on its own funds that guarantees payment to the payee by the drawer's bank. |
| Check | A written order of a depositor upon a commercial bank to pay to the order of a designated party or to a bearer a specified sum of money on demand. |
| Check endorsement | The signature on the back of a check presented for cash or deposit. |
| Circular E, Employer's Tax Guide | Federal income tax table booklet consisting of tables and instructions for federal income tax withholdings. |
| Currency exchange rate | The ratio at wich $1 U.S. may be traded for a foreign currency. |
| Current assets | Assets that can be sold or turned into cash quickly or can be consumed in a short period. |
| Current liabilities | Short-term debts usually paid in one year. |
| Debit cards | Take the place of a check; money is deducted immediately from one's checking account. |
| Deductions | Amounts deducted from gross pay, such as group medical insurance, dental insurance, union dues, savings bonds, and charitable contributions. |
| Deposit slips | Provided by the bank in multiple-copy sets encoded with the depositor's account number. |
| Deposits in transit | Deposits not recorded on the bank statement by the bank by the time the bank statement was mailed to you. |
| Direct payroll deposit | Payroll money automatically deposited to an account. |
| Drawee | The bank upon which a check is drawn. |
| Drawer | The person who draws/writes the check on his or her account. Also called Maker. |
| Electronic funds transfer (EFT) | An electronic delivery system for financial transactions. |
| Emplyee data | The name, martial status, witholding allowances, and hourly rate information for each employee for payroll purposes. |
| Expenses | Coast of operation of a company. |
| Federal income tax | Money withheld from a paycheck and paid to the federal govenment as a tax on wages earned. |
| Fixed assets | Assets with a long life that will be used over many year in the operation of the company. |
| Full endorsement | Also called a two-party check, this signature and instructions on the back of a check, transfer the check to a specified person or organization. |
| Gross earnings | Total regular earnings plus overtime earnings. Also called Total Earnings. |
| Gross profit on sales | Difference between revenue and the cost of the merchandise sold. |
| Health insurance (HI) | Commonly called Medicare, one of the two payroll taxes required for all employees by the federal government. |
| Hourly rate | Amount earned per hour. |
| Income statement | Also called a profit and loss (P&L) statement or an operating statement, a financial record showing the results of the operation of a company in terms of money earned and expensess incurred. |
| Liabilities | What a company owes. |
| Long-term liabilites | Debts due for long periods. |
| Marital status | Single, married, or head of household identified for payroll purposes. |
| Master budget | Consists of various budgets that collectively express the future acitivities of the business. |
| Medicare | Federal health insurance for older Americans. |
| Net pay | Total earnings minus deductions. |
| Old Age, Survivors, and Disability Insurance (OASDI) | Commonly called Social Security, one of the payroll taxes required for all employees by the federal government. |
| Outstanding checks | Checks written byt not paid by the bank. |
| Overtime hours | Any hours worked over the first forty hours per pay period. |
| Owner's equity | What a business is worth |
| Payee | Person to whom the check is written. |
| Payroll register | A record that summarizes, for each employee, the status of wages earned, payroll deductions, and final take-home pay. |
| Perpetual inventory record | A record used to keep track of office supplies inventory. |
| Personal identification number (PIN) | A secret number the depositor uses to access his or her account. |
| Petty cash record | Record of distributions of payments by expense category for petty cash fund. |
| Petty cash fund | A fund used to provide cash for the purchase of incidental office items and services. |
| Petty cash voucher | A receipt for each expenditure from the petty cash fund. |
| Plant and equipment | Also called fixed assets; assets with a long life that will be ued over many years in the company's operation. |
| Restrictive endorsement | Limits the use of a check to the purpose stated in the endorsement, such as "Pay to the order of." |
| Regular hours | First forty hours worked in a payroll period. |
| Stop-payment notification | Notice to stop payment on a check for a fee at any time until the check has cleared the bank upon which it is drawn. |
| Telephone transfers | Payments made by telephone. |
| Total earnings | Also called gross earnings. Regular earnings plus overtime earnings. |
| Traveler's checks | Checks used in the place of cash. |
| Web banking | Also called online banking. Service taht provides easy management of banking transactions online wherever a person has access to the Internet. |
| Withholding allowances | The number of allowances claimed on W-4 form. |
