What is meant by Specific Price Level Changes? Those price changes reflect the fluctuation in the value of specific goods or services vis-a-vis other goods or services.
What is meant by “Subsidiary”? Subsidiary is a corporation that is wholly or partially owned by another company.
What is meant by the stock dividend? Stock dividend is a distribution to current shareholders on a proportional basis of the corporation’s own stock.
What is meant by the term “Segment”? Segment is a component of an entity, the activities of which represent a separate line of business or class of a major customer.
What is meant by the Sinking Fund? A collection of cash or such other assets as marketable securities, that are set apart from the remaining assets of the firm, and are only used for a specified purpose is called a sinking fund.
What are serial bonds? Serial bonds are those bonds, the principal of which are payable on various dates.
What are specifically identifiable intangible assets? Those intangible assets, the costs of which can easily be identified as part of the cost of the asset, and the benefits of which generally have a determinable life.
What is the specific identification method? An inventory costing method that determines the actual acquisition cost of each item in the ending inventory is called the specific identification method.
What are the short-term monetary assets? The current assets, such as cash and those items that represent a specific claim to cash is called short-term monetary assets.
What is meant by the term “Sales Returns”? Sales returns are a reduction in the actual sales which occurs when a customer, for whatever reason, returns the item for a cash refund or a credit to his/her account.
What is meant by sales discounts? Sales discounts are a cash reduction offered to the customer in an attempt to ensure that they make prompt payment on their trade accounts.
What is meant by the accounting term “Sales Allowances”? Sales Allowances are the reduction in the actual sales price that occurs when a particular item does not perform to expectations, or when there are other defects in the product.
What is the statement of changes in stockholders’ equity? Statement of changes in stockholders’ equity is a financial statement that summarizes the transactions and events which affect a variety of stockholders’ equity accounts.
What is a Single-step Income Statement? – Definition A single-step income statement is a form of the income statement that has only four major categories (revenue, expenses, income before taxes, and net income), and that arrives at net income in a single step.
What is the straight-line depreciation method? Straight-Line is a depreciation method that assumes that depreciation is a constant function of time and results in an equal allocation of the asset’s cost to each accounting period of its estimated service life.
What is a Subsidiary Ledger? Subsidiary Ledger is a ledger that contains backup or more detailed accounts than does the general ledger. The Need for Subsidiary Ledgers The need for timely and accurate information, as well as good internal control procedures, requires that certain backup accounts be maintained. To illustrate, management needs to know not …
What is stockholders’ Equity? Stockholders’ equity is the owner’s equity of a corporation representing the residual claims of the owners.
What is the statement of changes in financial position? A statement of changes in financial position is the financial statement that describes the changes (inflows and outflows) in the enterprise’s resources. Prepared either on a working capital or cash basis.
What is meant by the term Sole Proprietorship? The term sole proprietorship means an unincorporated business entity in which one person is the owner.
Define the term Securities and Exchange Commission? Securities and exchange commission is a federal agency that has the legal power to set and enforce accounting standards for publicly traded firms.
Definition Standard costs are those that should be incurred in a particular production process under conditions. It is a predetermined cost of a unit of product, or an operation or department or process. It forms the basis of budgets and sales price determination decisions.
An accounting entry is based on some document. This document is known as source document. Source Documents include the followings: Sales Order Purchase Order Invoices and Credit Notes Petty Cash Voucher Credit Card Sales Voucher
Definition When at the end of a day, month or year some goods remain unsold that will be called as stock or inventory.
What is sales allowance? Definition If the seller is informed by the purchaser that some of the goods are defective or damaged or not according to specification, the seller may agree to reduce the price of such goods. This reduction in price is known as sales allowance.
What is sales discount? Definition The concession allowed by the seller on the sales is called sales discount.
What is return inwards? Definition If sold goods are found defective, unsatisfactory or excess in quantity, they are returned by the buyer, it is called sales return or returns inwards. Explanation occasionally goods sold to debtors on credit may be returned by them for various reseasons, viz, if the goods are defective, or in excess …
Definition When the goods purchased for selling purpose are sold to customers at a particular price are termed as sales. In simple words goods sold are called sales. Example Cloth sold by a cloth merchant is known as “Sales” Cement sold by a cement dealer is known as “Sales” Cars sold by a car dealer …