AR ACCT II: Unit 2 vocab #S 1-39

39 terms by Myrickb 

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Accumulated earnings

the employee's year-to-date gross earnings from the beginning of the year through the end of each pay period

Allowance

reduces the amount of income tax to be withheld

Beginning inventory

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

Cash payments journal

a special journal used to record only cash payment transactions

Cash receipts journal

a special journal used to record only cash receipt transactions

Commision

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

Cost of merchandise

the price a business pays for goods it purchases to sell

Deduction

an amount that is subtracted from an employee's gross earnings

Direct deposit

the depositing of an employee's net pay directly into his/her personal bank account; usually made through electronic funds transfer

EFT

a computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents

Employee earnings record

a business form used to record details affecting payments made to an employee

Ending inventory

the merchandise a business has on hand at the end of a fiscal period

Equalities

financial rights to the assets of a business

Expense

a decrease in owner's equity resulting from the operations of a business

Gross earnings

the total pay due for a pay period before deductions

Gross profit on sales

the revenue remaining after cost of merchandise sold has been deducted

Income statement

a financial statement showing the revenue and expenses for a fiscal period

Net income

the difference between total revenue and total expenses when total expenses are greater

Net loss

the difference between total revenue and total expenses when total expenses are greater

Net pay

the total earnings paid to an employee after payroll taxes and other deductions

Net purchases

total purchases less purchases discount and purchases returns and allowances

Net sales

total sales less sales discount and sales returns and allowances

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

Overtime rate

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

Pay period

the period coverd by a salary payment

Payroll

the total amount earned by all employees for a pay period

Payroll register

a business form used to record payroll information

Payroll taxes

taxes based on the payroll of a business

Post closing trial balance

a trial balance prepared after the closing entries are posted

Purchases journal

a special journal used to record only purchases of merchandise on account

Revenue

an increase in owner's equity resulting from the operating of a business

Salary

the money paid for employee services

Sales journal

a special journal used to record only sales of merchandise on account

Source document

a business paper from which information is obtained for a journal entry

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

Tax base

the maximun amount of earnings on which a tax is calculated

Wages

an amount of money paid to an employeee at a specified rate per hour worked

Withholding allowance

a deduction from total earnings for each person legally supported by a taxpayer,including the employee

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