| Term | Definition |
|---|
| Accumulated Earnings | The employee's year-to-date gross earnings ofr the employee's 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 |
| Commission | 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 |
| Employee Earnings Record | A business form used to record details affecting payments made to an employee |
| Ending Inventory | The merchandise a businesshas on hand at the end of a fiscal period |
| 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 merchindise sold has been deducted |
| Income statement | A financial Statement showing the revenue and total expenses when total revenue is greater |
| Net Loss | The difference between total revenue and total expenses when total expenses are greater |
| 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 expenses |
| 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 covered 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 |
| Post-closing trial balance | A trial balance prepared after the closing entries are posted |
| Purchases Jounal | A special journal used to record only pusrchases 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 jounal entry |
| Statement of Retaned Earnings | A statement that reports the changes that have taken place in the retained earnings account during the fiscal period; prepardd as a supporitn document fr the balance sheet |
| Wages | An amount of money paid to an employee at a specified rate per hour worked |
Combine with other sets
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