salary
the money paid for employee services
pay period
the period covered by a salary payment
payroll
the total amount earned by all employees for a pay period
total earnings
the total pay due for a pay period before deductions
payroll taxes
taxes based on the payroll of a business
withholding allowance
a deduction from total earnings for each person legally supported by a tax paye, including the employee
social security tax
a federal tax paid for old-age, survivors, and disability insurance
medicare tax
a federal tax paid for hospital insurance
tax base
the maximum amount of earnings on which a tax is calculated
payroll register
a business form used to record payroll information
net pay
the total earnings paid to an employee after payroll taxes and other deductions
employee earnings record
a business form used to record details affecting payments made to an employee
partnership
a business in which two or more persons combine their assets and skills
partner
how each member of a partneship is called
merchandising business
a business that purchases and sells goods
retail merchandising business
a merchandising bussiness that sells to those who use or consume the goods
merchandise
goods that a merchandising business purchases to sell
wholesale merchandising business
a business that buys and resells merchandise to retail merchandising business
cost of merchandise
the price a business pays for goods it purchases to sell
markup
the amount added to the cost of merchandise to establish the selling price
vendor
a business from which merchandise is purchased or supplies or other assets are bought
purchase invoice
an invoice used as a resource document for recording a purchase on account transaction
terms of sale
an agreement between a buyer and a seller about payment for merchandise
cost of merchandise sold
the total original price of all merchandise sold during a fiscal period
gross profit on sales
the revenue remaining after cost of merchandise sold has been deducted
distribution of net income statement
a partnership financial statement showing net income or loss distribution to partners
owner's equity statement
a financial statement that summarizes the changes in owners' equity during a fiscal period
supporting schedule
a report prepared to give details about an item on a principal financial statement
Income-Statement Approach
Summary of an entity's revenues, expenses, and net income or net loss for a specific period. Also called the statement of earnings or the statement of operations.
Interest
The revenue to the payee for loaning money; the expense to the debtor.
Interest Period
The period of time during which interest is computed. It extends from the original date of the note to the maturity date. Also called note term, or simply time.
Interest Rate
The percentage rate of interest specified by the note. Interest rates are almost always stated for a period of one year. A 9% note means that the amount of interest for one year is 9% of the note's principal amount.
Maker Of A Note
The person or business that signs the note and promises to pay the amount required by the note agreement; the debtor.
Maturity Date
Also called the Due Date.
Maturity Value
The sum of the principal plus interest due at maturity.
Note Term
Also called Interest Period.
Payee Of A Note
The person or business to whom the maker of a note promises future payment; the creditor
Percent-Of-Sales Method
A method of estimate uncollectible receivables that calculates uncollectible-account expense. Also called the income-statement approach.
Principal
The amount loaned out by the payee and borrowed by the maker of the note.
Principal Amount
Also called Principal.
Promissory Note
A written promise to pay a specified amount of money at a particular future date.
Quick Ratio
A more stringent measure of ability to pay current liabilities.
Receivables
Monetary claims against a business or an individual.
Time
Ratio of operations to interest expense. Measures the number of times that operating income can cover interest expense.
Uncollectible-Account Expense
Cost to the seller of extending credit. Arises from the failure to collect from credit customers. Also called doubtful-account expense, or bad-debt expense.
Debtor
The party to a credit transaction who makes a purchase and has a payable.
