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39 terms

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

STUDY
PLAY
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