Image via WikipediaWhat is Defined Benefit Plan?
The defined benefit plan is a pension plan that promises employees a fixed annual pension benefit at retirement, based on years of service and compensation levels.
What is Defined Contribution Plan?
The defined contribution plan is a pension plan that requires a fixed amount of money to be invested for the employee’s behalf during the employee’s working years.
What is Discount?
The discount is the interest deducted from the maturity value of a note or the excess of the face amount of bonds over their issue price. (Bonds are studied in Accounting 2).
What is Discount Rate?
The discount rate is the rate used in computing the interest to be deducted from the maturity value of a note.
What is Employee’s Earnings Record?
The employee’s earning record is a detailed record of each employee’s earnings.
What is FICA Tax?
Federal Insurance Contributions Act (FICA) tax used to finance social security programs for old-age retirement, disability benefits, survivors (orphans/widows), and health insurance for the aged (Medicare).
What are Fringe Benefits?
The fringe benefits are benefits—such as dental, eye, medical, Blue Cross, pension— provided to employees in addition to wages and salaries.
What is Gross Pay?
Gross pay is the total earnings of an employee for an employee for a payroll period.
What is Net Pay?
Net pay is gross pay less payroll deductions; the amount the employer is obligated to pay the employee.
What is Payroll?
The payroll is the total amount paid to employees for a certain period.
What is Payroll Register?
The payroll register is a special journal, multicolumn, used to assemble and summarize payroll data at the end of each payroll period.
What are Proceeds?The proceeds are the net CASH available from discounting a note payable.
What are Quick Assets?
Quick assets include cash and other current assets that can be quickly converted to cash, such as marketable securities and receivables.
What is Quick Ratio?Quick ratio is a financial ratio that measures the ability to pay current liabilities with quick assets (cash, marketable securities, accounts receivable).
What is Working Capital?
Working capital is the excess of current assets of a business over its current liabilities.
What is Contingent Liability?
A contingent liability is a potential liability that may or may not come to pass.
What is “Take Home Pay?”
Take Home pay is the next pay in the employees payroll check, or the gross earnings less deductions.
What is Vesting?
Vesting is the date at which the employee is entitled to the pension contributions the employer makes on his or her behalf. If a company offers vesting after 5 years of service, this means that the employee must stay with the company at least five years to own the pension contributions the employer made.
Ch1 Accounting in Action
Ch2 Recording Process
Ch3 Adjusting the Accounts
Ch4 Completing the Accounting Cycle
Ch5 Merchandising Operations
Ch7 Accounting Information Systems
Ch8 Internal Control and Cash
Ch9 Accounting for Receivables
Ch10 PP&E, Natural Resources, and Intangible Assets
Ch11 Current Liabilities and Payroll
Ch14 Corporations:Dividends, RE
Ch15 Long Term Liabilities
Ch17 Statement of Cash Flows
Ch18 Financial Statement Analysis
Plato and Accounting
Luca Pacioli and DaVinci