The account that represents the amount of cash received by a corporation over the stock's par value.

The dollar amount assigned to each share of stock when the corporation's charter is approved; used to determine the amount credited to the capital stock account.

An individual who shares ownership of an unincorporated trade or business with one or more persons.

An unincorporated organization with two or more parties who join together to carry on a trade or business, with each party contributing money, property, labor, or skills and expecting to share in the profits and losses of the business.

A written document that sets out the terms under which the partnership will operate.

Ending a partnership involves winding up the affairs of the partnership business.

A trade or business activity in which a taxpayer did not materially participate and any rental activity (except a rental activity for those who qualify as real estate professionals).

Income from a trade or business activity in which a taxpayer did not materially participate and income from all real estate activities, regardless of their participation (except rental activities for those who qualify as real estate professionals).

The exclusive right granted to an owner or inventor to manufacture, use, or sell an invention for a limited period of time.

The amount of time over which an employee is paid.

The person or business to whom a check is written or a note is payable.

A list of the employees and the payments due to each employee for a specific pay period.

A form that summarizes information about employees' earnings for each pay period.

Account where the employer's payroll taxes are recorded.

A series of regular definitely determinable payments made to the individual after they retire from work.

Daily or per day.

Payments made on a periodic basis without regard to actual expenses incurred.

A method of estimating uncollectible debts expense in which a business assumes that a certain percentage of each year's net sales will be uncollectible.

The period of time after which a taxpayer can bring no legal action against the IRS regarding their tax return or vice versa.

An inventory system in which the number of items on hand is determined by a physical count.

A payment or distribution from a retirement plan that recurs on a regular basis, such as monthly or yearly.

Accounts that are continuous from one accounting period to the next; balances are carried forward to the next period (for example, assets, liabilities, and owner's capital accounts).

A condition that indicates an individual cannot engage in any substantial gainful activity because of a physical or mental condition. A physician must certify that the condition has lasted or can be expected to last continually for at least 12 months or that the condition can be expected to result in death.

An inventory system in which a constant, up-to-date record of the amount of merchandise on hand is maintained.

A court-appointed executor or administrator of an estate or anyone who is in charge of a deceased individual's property.

An activity that involves the performance of personal services in the fields of health (including veterinary services), law, engineering, architecture, accounting, actuarial science, performing arts, consulting, or any other trade or business in which capital is not a material income-producing factor.

A corporation for which the main work is the performance of personal service activities and for which these activities are substantially performed by employees who are also owners of the corporation.

A set of unique qualities that makes us different from all other people.

A payment made from the petty cash fund.

Cash kept on hand for making small, incidental cash payments.

A record of all disbursements made from the petty cash fund.

A form requesting money to replenish the petty cash fund.

A form that provides proof of payment from the petty cash fund.

The person responsible for maintaining the petty cash fund and for making petty cash disbursements.

The gradual reduction in the amount allowed as a deduction, a credit, or an expense.

An actual count of all the merchandise on hand and available for sale.

Ready and available for a specific use whether in a trade or business, the production of income, a tax-exempt activity, or a personal activity.

The date property is ready and available for a specific use.

Long-lived assets that are used in the production or sale of other assets or services over several accounting periods.

Electronic cash register.

Mortgage interest fees paid to reduce the initial interest rate on a loan. Points may also be called loan origination fees, maximum loan charges, loan discount, or discount points.

A person who owns the proceeds of an insurance contract. The policyholder may also be the insured.

Interest, dividends, annuities, and royalties not derived in the ordinary course of a trade or business; a gain or loss from the disposition of property that produces these types of income or that is held for investment.

Prepared to verify that total debits equal total credits after the closing entries are posted.

The process of transferring information from the general journal to individual general ledger accounts, the fourth step in the accounting cycle.

The voluntary contribution an employer deducts from an employee's pay that is not subject to income tax. Also known as deferred compensation or elective deferral.

A type of share in the ownership of a company that usually does not provide voting rights, but the preferred stock shareholders' claim to dividends comes before shareholders owning common stock.

The amount paid for insurance.

An area declared by the President of the United States to be eligible for federal assistance under the Disaster Relief and Emergency Assistance Act.

The amount of money being borrowed on a promissory note.

Losses not allowed in prior years due to basis limitations, at-risk limitations, or passive activity loss limitations that are carried forward to the current tax year.

A tax-exempt bond issued by a state or locality to finance the private development of public projects for the benefit of the general public.

The amount of cash actually received by a borrower on a non-interest-bearing note payable.

A stamp placed on a creditor's invoice that outlines the steps to be followed in processing the invoice for payment.

The amount of revenue earned above the expenses incurred to operate the business.

Ratios used to evaluate the earnings performance of a business during the accounting period (for example, return on common stockholders' equity).

Damage resulting from a steadily ongoing operation or a normal process, rather than from a sudden event.

A written promise to pay a certain amount of money at a specific future time.

Items of value that are owned or controlled by a business; economic resources of a business.

A category for property under the Modified Accelerated Cost Recovery System (MACRS) that generally determines the depreciation method, recovery period, and convention.

Creditors' and owners' financial claims to the assets of a business.

The process of determining whether the amounts of cash recorded in the accounting records of a business and in its checkbook agree.

Adding all debit balances and all credit balances of ledger accounts and then comparing the two totals to see whether they are equal.

A document that transfers a stockholder's voting rights to someone else.

Accounting services that range from tax preparation to merger and acquisition consultation; a variety of accounting services offered to businesses.

A corporation whose stock is widely held, has a large market, and is usually traded on a stock exchange.

A partnership in which the partnership's interests are traded on an established securities market or are readily tradable on a secondary market (or its substantial equivalent).

A written offer to a supplier to buy certain items.

A written request that a certain item or items be ordered.

The account used to record the cost of merchandise purchased during a fiscal period.

A price reduction given when a business keeps unsatisfactory merchandise it has bought.

Term used by the buyer to refer to a cash discount offered for early payment.

A special journal used to record all transactions in which items are bought on account.

The return to the supplier for full credit of merchandise bought on account.

A contract granting the owner of a security the right to sell the security at a predetermined price during a specified period of time.