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Specific Price Level Changes

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.

Stock Dividend Definition

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.

Segment Definition

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.

Sinking Fund Definition

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.

Sales Returns Definition

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.

Sales Discounts Definition

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.

Sales Allowances Definition

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.

Single-step Income Statement Definition

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.

Straight-Line Method of Depreciation Definition

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.

Subsidiary Ledger

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 …

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Standard Costs

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.

What is a source document?

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

Sales allowance

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.

Sales discount

What is sales discount? Definition The concession allowed by the seller on the sales is called sales discount.

Sales

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 …

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