| A | B |
|---|
| Accounting | ”Accounting is the systematic recording |
| Accounting Equation | ”Assets = Liabilities + Owner’s Equity. Left side of the equation must be in balance with the right side of the equation.” |
| Accounting Software | ”Set of instructions that operate the computer and enable the user to enter financial information and create reports |
| Accounting System | ” A systematic approach to recording and maintaining financial transactions and reports following certain steps in an accounting cycle process which include analyzing transactions into debit and credit parts |
| Accrual Accounting | ”An accounting method that measures the performance and position of a company by recognizing economic events regardless of when cash transactions occur. The general idea is that economic events are recognized by matching revenues to expenses (the matching principle) at the time in which the transaction occurs rather than when payment is made (or received).” |
| Analyzing Financial Transactions into Debit and Credit Parts | ”This is an accounting function. A T |
| Assets | ”Things of value owned by a business such as cash |
| Automated Accounting System | ” A computerized accounting system is a system used by businesses for recording their financial information” |
| Capital | ”The account used to summarize the owner’s equity in a business. Also a type of resource incorporating all tools |
| Capitalization | ”In accounting |
| Cash Payments Journal | ”A special journal used to record only cash payment transactions.” |
| Credit | ”An amount recorded on the right side of a t-account. Credits decrease assets and increase liabilities and owner’s equities accounts.” |
| Debit | ” An amount recorded on the left side of a t-account. Debits increase asset accounts and decrease liability and owner’s equity accounts.” |
| Depreciation | ”A noncash expense that reduces the value of an asset as a result of wear and tear |
| Double | ”Entry Accounting |
| Fiscal Period | ”The length of time for which a business summarizes and reports financial information. Consistent reporting is required.” |
| General Ledger | ”A ledger that contains all accounts needed to prepare financial statements for a business.” |
| Generally Accepted Accounting Principles (GAAP) | ”The rules followed by accountants in the United States to ensure financial reports are produced correctly.” |
| Journal Entry | ” A journal entry |
| Journalizing | ”Recording the debit and credit parts of a financial transaction onto an accounting form called a journal. This is the second step in the accounting process after transactions have been analyzed into their debit and credit parts using the T-Account.” |
| Matching Expenses with Revenue | ”A generally accepted accounting principle in which the expenses incurred associated with earning revenue are reporting during the same fiscal period as each other.” |
| Petty Cash | ”An amount of cash kept on hand and used for making small payments. A petty cash slip is a form used to record proof of using the petty cash fund for a purchase.” |
| Posting | ”An accounting function of recording entries from the journal to the proper account within the general ledger of a company.” |
| Realization of Revenue | ”The revenue recognition principle is a cornerstone of accrual accounting together with matching principle. They both determine the accounting period |
| Sarbanes | ”Oxley Act (SOX) |
| T-Account | ”An accounting device that can be used for analyzing financial transactions into their debit and credit parts. |
| Y=mx+b a straight line | also may be written as –b |
| Accounts Receivable | ”Asset of money that is owed to a business by others who are usually customers.” |
| Accounts Receivable Ledger | ”A subsidiary ledger containing only accounts for charge customers.” |
| Collections | ”A collection agency is a company or organization that creditors or lenders hire to collect on bad debts |
| Receipt | ”A source document showing payment was made and received for a purchase.” |
| Accounts Payable | ”Debt/money/liability a business owes to others who are usually vendors. |
| Liabilities | ”What a business owes to others. They are debts.” |
| Inventory Turnover | ”The number of times the average inventory has been sold and replaced in a given period of time. |
| Invoice | ” or bill is a commercial document issued by a seller to the buyer |
| Purchase Order | ”A legal contract between a seller and buyer to purchase a specific number of products at a specified price.” |
| Purchases Journal | ”A special journal used to record only purchases of merchandise on account. Merchandising businesses use these journals since they purchase large quantities of merchandise to resell on a regular basis.” |
| Purchasing | ”The function in a business that searches for quality material resources |
| Straight Line Depreciation Method | ”The simplest and most commonly used depreciation method |
| Straight Line Depreciation Calculation | ”(Purchase Price of Asset |
| Dependents | ”Being able to claim a dependent on a tax return is tied to a number of related tax benefits. Taxpayers who claim dependents can claim an additional personal exemption for each dependent. The way the tax laws are written |
| Employer Contributions | ”When completing the payroll record |
| FICA | ”Social Security Taxes that are deducted from a worker’s paycheck.” |
| Involuntary Deductions | ”Involuntary payroll Deductions are those over which an employer or Employee has little or no control. |
| Medicare | ”In the United States |
| Payroll | ” In a company |
| Social Security | ”The comprehensive federal program of benefits providing workers and their dependents with retirement income |
| State Tax | ”Income taxes assessed to a business by a state taxing authority agency. The amount varies depending upon the state.” |
| W | ”2 Form |
| W | ”4 Form |
| Worker’s Compensation Insurance | ” Insurance that covers medical and rehabilitation costs and lost wages for employees injured at work; required by law in all states. Almost every business in the United States that has employees has to handle the problem of workers' compensation. Most states (with a few important exceptions) essentially require employers to purchase an insurance policy to handle their statutory obligations to workers who are injured or made ill due to a workplace exposure.” |
| 1099 Form | ” A 1099 is a tax form for independent contractors which shows how much they made from a certain business.” |
| 401K Plan | ” A qualified plan established by employers to which eligible employees may make salary deferral (salary reduction) contributions on a post-tax and/or pretax basis. The common name in the United States for the tax qualified defined contribution pension plan account and takes its name from subsection 401(k) of the Internal Revenue Code (Title 26 of the United States Code). 401(k) are "defined contribution plans" with annual contributions limited |
| Allowances | ” An allowance an individual claims on a W |
| Deductions | ”Amounts that will be subtracted from gross income such as FICA |
| Direct Deposit | ”The electronic deposit of funds directly into a bank account as a form of payment. Common uses for direct deposit include paychecks and tax refunds.” |
| Disbursements | ”Money paid out; expenditures.” |
| Payroll Taxes | ” Payroll taxes generally fall into two categories: deductions from an employee’s wages and taxes paid by the employer based on the employee's wages. The first kind are taxes that employers are required to withhold from employees' wages |
| Projected Disbursements | ”Projecting into the future the payment of money |
| Taxes | ”Payroll taxes are deducted from paychecks to support Social Security (FICA) |
| Proportional taxation | ”The tax as a percentage of income remains constant as income increases |
| Progressive taxation | ”The tax as a percentage of income increases as income increases.” |
| Regressive taxation | ”The tax as a percentage of income decreases as income increases.” |
| Marginal tax rate | ”The percentage of each additional dollar of income that goes to pay the tax. High marginal rates reduce the after-tax income from working |
| Ability-to-pay tax principle | ”those with a greater ability to pay |
| Tariff | ”type of trade barrier imposed by a government as a tax on imported or exported goods” |
| Unemployment tax | ” Federal Unemployment Tax Act (FUTA) |
| Voluntary Deductions | ” The law does not require employers to withhold voluntary deductions from their employees' paychecks. Voluntary deductions are dependent on whether the employee chooses to have the payroll deduction. Some voluntary deductions are pre-tax (deductions are withheld before taxes) while others are post-tax in which contributions are made on an after-tax basis. The Payroll Department processes a variety of voluntary deductions for permanent employees. Some of these deductions are tax deferred which means they are exempt from federal and state taxes. Some deductions are pre-tax which means they are exempt from FICA/Medicare tax as well as federal and state taxes” |
| Withholding | ” If you are an employee |
