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Online Accounting Dictionary

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  • Salary payable represents amounts of future cash payments to employees for work that has already been performed.
  • Sales taxes are state or local taxes on sale of products or services, based on the percentage of sales price.
  • Salvage value is portion of an asset cost that is expected to be recovered at the end of its useful life.
  • Selling and administrative expenses are expenses of selling and administrative nature that are not directly traceable to a specific product. Examples are advertising, administrative salaries and insurance, among others.
  • Single-step income statement shows only one step in determining a net income (or net loss).
  • Source document serves as a basis for an accounting entry. Source documents are what accountants use to record accounting transactions. Source documents are also called business documents.
  • Specific identification is an actual physical flow inventory costing method in which items still in inventory are specifically costed to arrive at the total cost of the ending inventory.
  • Standard costing is a product costing system when a company measures all costs – direct materials, direct labor, and factory overhead – using standard quantities and costs. It is often used to measure performance, determine target costs, and improve production process.
  • Statement of changes in equity shows all changes in owner's equity for a period of time. This statement is also called Owners' Equity Statement.
  • Step-variable costs are costs that stay fixed over a range of activity, and then change after this range is overcome. In other words, these costs change in increments.
  • Straight-line depreciation is a depreciation method in which periodic depreciation is the same for each period of the asset useful life.
  • Strategic ABM aims to enhance activity efficiency: it eliminates nonessential activities and selects appropriate operational activities as well as profitable customers. Strategic ABM utilizes such techniques as value chain and customer profitability analyses.
  • Sum-of-the-years-digits method applies a decreasing rate to the asset depreciable value and produces a decreasing depreciation expense over the useful life of the asset. The decreasing rate equals the fraction of a current year's digit to the total of all year digits in the asset useful life.
  • Supplies is an asset account used to keep track of supplies (e.g. pencils, paper). The Supplies account is increased when new supplies are acquired and decreased when supplies are used / expensed (usually in a single adjusting entry at period end).
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