Term
| units-of-production method |
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Definition
| method of depreciation that provides for depreciation exp based on the expected productive capacity of a fixed asset. |
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Term
| accelerated depreciation method |
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Definition
| A depreciation method that provides for a higher depreciation amount in the first year of the asset's use, followed by a gradually declining amount of depreciation. |
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Term
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Definition
| The periodic transfer of the cost of an intangible asset to expense. |
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Term
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Definition
| The cost of a fixed asset minus accumulated depreciation on the asset. |
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Term
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Definition
| the amount the buyer owes the seller when a fixed asset is traded in on a similar asset. |
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Term
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Definition
| The costs of acquiring fixed assets, adding to a fixed asset, improving a fixed asset, or extending a fixed asset's useful life. |
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Term
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Definition
| Leases that include one or more provisions that result in treating the leased assets as purchased assets in the accounts. |
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Term
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Definition
| An exclusive right to publish and sell a literary, artistic, or musical composition. |
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Term
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Definition
| The process of transferring the cost of natural resources to an expense account. |
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Term
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Definition
| The systematic periodic transfer of the cost of a fixed asset to an expense account during its expected useful life. |
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Term
| double-declining-balance method |
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Definition
| A method of depreciation that provides periodic depreciation expense based on the declining book value of a fixed asset over its estimated life. |
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Term
| fixed asset turnover ratio |
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Definition
| The number of dollars of sales that are generated from each dollar of average fixed assets during the year, computed by dividing the net sales by the average net fixed assets. |
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Term
| fixed assets (or plant assets) |
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Definition
| Longterm or relatively permanent tangible assets such as equipment, machinery, and buildings that are used in the normal business operations and that depreciate over time. |
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Term
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Definition
| An intangible asset that is created from such favorable factors as location, product quality, reputation, and managerial skill. |
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Term
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Definition
| Long-term assets that are useful in the operations of a business, are not held for sale, and are without physical qualities. |
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Term
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Definition
| Leases that do not meet the criteria for capital leases and thus are accounted for as operating expenses. |
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Term
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Definition
| Exclusive rights to produce and sell goods with one or more unique features. |
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Term
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Definition
| The estimated value of a fixed asset at the end of its useful life. |
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Term
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Definition
| Costs that benefit only the current period or costs incurred for normal maintenance and repairs of fixed assets. |
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Term
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Definition
| A method of depreciation that provides for equal periodic depreciation expense over the estimated life of a fixed asset. |
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Term
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Definition
| The amount a seller allows a buyer for a fixed asset that is traded in for a similar asset. |
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Term
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Definition
| A name, term, or symbol used to identify a business and its products. |
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Term
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Definition
| Liabilities that may arise from past transactions if certain events occur in the future. |
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Term
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Definition
| A pension plan that promises employees a fixed annual pension benefit at retirement, based on years of service and compensation levels. |
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Term
| defined contribution plan |
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Definition
| A pension plan that requires a fixed amount of money to be invested for the employee's behalf during the employee's working years. |
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Term
| employee's earnings record |
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Definition
| A detailed record of each employee's earnings. |
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Term
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Definition
| Federal Insurance Contributions Act tax used to finance federal programs for old-age and disability benefits (social security) and health insurance for the aged (Medicare). |
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Term
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Definition
| Benefits provided to employees in addition to wages and salaries. |
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Term
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Definition
| The total earnings of an employee for an employee for a payroll period. |
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Term
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Definition
| Gross pay less payroll deductions; the amount the employer is obligated to pay the employee. |
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Term
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Definition
| The total amount paid to employees for a certain period. |
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Term
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Definition
| A multicolumn report used to assemble and summarize payroll data at the end of each payroll period. |
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Term
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Definition
| A cash payment to retired employees. |
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Term
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Definition
| Cash and other current assets that can be quickly converted to cash, such as marketable securities and receivables. |
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Term
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Definition
| A financial ratio that measures the ability to pay current liabilities with quick assets (cash, marketable securities, accounts receivable). |
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Term
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Definition
| long lived assets that are not used in the normal operations and are held for resale. |
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Term
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Definition
| the party who owns the asset |
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Term
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Definition
| the party to whom the rights to use the asset are granted by the lessor |
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Term
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Definition
| includes wear and tear during use or from exposure to weather |
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Term
| functional depreciation factors |
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Definition
| include obsolescence and changes in customers needs that cause the asset to no longer provies services for which it was intended. |
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Term
| 2 common misunderstandings about depreciation |
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Definition
1. doesn't measure a decline in the market value of a fixed asset.
2. depreciation does not provide cash to replace fixed assets as they wear out |
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Term
| 3 factors that determine the depreciation expense |
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Definition
| the intial cost, the expected useful life and the estimated residual value. |
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Term
| residual valur is also called _______ |
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Definition
| scrap value, salvage, or trade-in value |
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Term
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Definition
| fixed asset's initial cost minus the residual value |
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Term
| three different depreciation methods |
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Definition
1. straight-line
2. units-of-production
3. double-declining |
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Term
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Definition
| annual dep= cost - residual value/ useful life |
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Term
| units of production formula |
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Definition
dep per unit= cost - residual value/
total units of production (gives amount per hour mult. by # of units) |
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Term
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Definition
| cost/useful life= mult by 2 |
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Term
| if a fixed asset is no longer used and has no residual value it is |
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Definition
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Term
| patents, copyrights, trademards, and goodwill are long-lived assets that are used in the operation of a business and are not held for sale. |
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Definition
| intangible assets because they do not exist physically |
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Term
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Definition
| the amount of cost to ransfer to expense |
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Term
| when a company or a bank advances credit it is |
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Definition
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Term
| a bank or company making a loan is the |
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Definition
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Term
| the individuals or companies receiving a lone is the |
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Definition
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Term
| long term liabilities are often paid pack in payments called |
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Definition
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Term
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Definition
| payment for managerial and administrative services (usually monthly or yearly) |
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Term
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Definition
| refers to payment for employee manual labor |
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Term
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Definition
| provides payments for retirees, survivors, and disability insurance |
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Term
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Definition
| provides health insurance for senior citizens |
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Term
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Definition
| Federal insurance contributions act: withholds money for social security and medicare |
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Term
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Definition
| employers must match employees FICA contributions |
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Term
| Federal unemployment compensation tax |
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Definition
| (FUTA): employer tax provides for temporary payments to those who become unemployed. |
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Term
| State unemployment compensation tax |
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Definition
| (SUTA): employer tax also provides temporary payments to those who become unemployed. closely coordinated with FUTA. |
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Term
| State unemployment compensation tax |
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Definition
| (SUTA): employer tax also provides temporary payments to those who become unemployed. closely coordinated with FUTA. |
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Term
| State unemployment compensation tax |
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Definition
| (SUTA): employer tax also provides temporary payments to those who become unemployed. closely coordinated with FUTA. |
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Term
| Payroll systems should be designed to |
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Definition
| pay employees accurately and timely, meet regulatory requriements of federal state and local agencies, provide useful data for management decision making needs. |
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Term
| the major elements of most roll systems are |
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Definition
| payroll register, employee's earnings record, payroll checks |
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Term
| examples of fringe benefits |
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Definition
| vacation, medical, retirement benefits |
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