One of four quarters of a calendar year: January through March, April through June, July through September, or October through December.

Period for which a business begins on January 1 and ends on December 31.

The right to buy a stated number of shares of stock at a predetermined price (the strike price) before a specified date.

Checks paid by the bank and deducted from the depositor's account.

Money supplied by investors, banks, or owners of a business. Refers to the dollar value of assets contributed to the business.

Everything an individual owns and uses for personal purposes, pleasure, or investment.

Amounts paid to an individual or credited to their account by regulated investment companies and real estate investment trusts (REITs). These amounts are also known as capital gain dividends.

The account that represents the total amount of investment in the corporation by its stockholders (owners).

To recover a cost over a period of years through deductions for depreciation, amortization, or depletion, and adding the cost to the basis of the property to which it relates.

The unpaid interest on a loan that the lender adds to the outstanding principal balance of the loan.

The amount a customer can deduct from the amount owed for purchased merchandise if payment is made within a certain time.

A special journal used to record all transactions in which cash is paid out or decreased.

The cash received by a business.

A special journal used to record all transactions in which cash is received.

A transaction in which the business receives full payment for the merchandise sold at the time of the sale.

Any option that, upon exercise, is settled by paying the owner of the option cash or other property and not the actual property underlying the option.

Wages paid by cash, checks, money orders, or equivalent means. Cash wages do not include the value of food, lodging, clothing, or other such non-cash items given to an employee.

The damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual.

A public accountant who has passed the licensing exam on accounting theory, practice, auditing, and business law. (CPA)

An amount of money, consisting of varying denominations of bills and coins, that is used to make change in cash transactions.

A customer to whom a sale on account is made.

A donation or gift to, or for the use of, a qualified organization. It is voluntary and is made without getting, or expecting anything of equal value.

A list of all the accounts and their assigned account numbers, used in journalizing transactions.

A legal written permission that gives a corporation certain rights and privileges and spells out the rules under which the corporation is to operate.

A written order from a depositor telling the bank to pay a stated amount of cash to the person or business named on the check.

A source document that lists the same information that appears on a check and shows the balance in the checking account before and after each check is written.

Allows a person or business to deposit cash in a bank and to write checks against the account balance.

A natural child, stepchild, adopted child, or an eligible foster child.

A payment that is specifically designated as child support or treated as specifically designated as child support under a divorce or separation instrument.

An individual who has been certified by a licensed health care practitioner within the previous 12 months as one of the following: (1)an individual who is unable, for at least 90 days, to perform at least two activities of daily living without substantial assistance from another individual due to loss of functional capacity (activities of daily living are eating, toileting, transferring, bathing, dressing, and continence), or (2) an individual who requires substantial supervision to be protected from threats to health and safety due to severe cognitive impairment.

An employee (other than a minister or member of a religious order) of a church or qualified church-controlled organization that is exempt from employer Social Security and Medicare taxes.

Annuity benefits that are paid primarily under the Civil Service Retirement System or the Federal Employees Retirement System.

The number of years that establishes the property class and the recovery period for most types of property for the General Depreciation System and the Alternative Depreciation System under the Modified Accelerated Cost Recovery System.

A corporation that, at any time during the last half of the tax year, has more than 50% in value of its outstanding stock directly or indirectly owned by five or fewer people. This type of corporation is generally not a personal service corporation.

Journal entries made to close, or reduce to zero, the balances in the temporary capital accounts and to transfer the net income or net loss for the period to the capital account.

Individuals living together in an intimate relationship when not legally married.

Two or more loans made to the same borrower that are treated by both the lender and the borrower as one loan.

Any work of art, rug, antique, metal (such as gold, silver, and platinum bullion), gem, stamp, coin, or alcoholic beverage that is sought by a collector.

An amount paid to an employee based on a percentage of the employee's sales.

A type of share in the ownership of a company that usually provides the right to vote on decisions relating to the company's management. Shareholders are entitled to receive distributions of the company's profit in the form of dividends.

An individual who performs services for an employer in return for compensation. An employee is subject to the control of the employer regarding what work is done and how, when, and where it is done.

A marriage in which a man and woman are considered to be married even without a license or a formal ceremony. Only certain states recognize common-law marriages.

Income earned while married and domiciled in a community property state that is allocated to both spouses, regardless of which spouse actually earned it.

The holdings and resources owned in common by a married couple.

The accounting principle that allows the financial information from one period to be compared to that of another period; also, the comparison of financial information of two or more businesses.

Money or other benefits given or received as payment for work or service. Compensation can include wages, salaries, bonuses, prizes, and tips an employee receives.

A journal entry with two or more debits or two or more credits.

A system in which financial information is recorded by entering it into a computer.

The process by which private property owned by a taxpayer is legally taken for public use without their consent.

An IRA account used as a holding account for eligible rollover distributions from an employer plan that can be rolled over to a new employer plan later.

A written agreement between a taxpayer and the IRS that extends the statutory period of limitations

Accounting guideline requiring that accountants choose the safer, or more conservative, method when there is a choice of procedures.

The consistent use of an inventory costing method helps owners and creditors compare financial reports from one period to another.

An account whose balance is a decrease to another account.

An account that acts as a control on the accuracy of the accounts in a related subsidiary ledger; its balance must equal the total of all the account balances in the subsidiary ledger.

Business organization that is recognized by law to have a life of its own.

An entry made to correct an error in a journal entry discovered after posting.

The actual cost to the business of the merchandise sold to customers.

An agreement to pay for a purchase at a later time; an entry to the right side of a T account. credit cards Cards containing a customer's name and account number presented when buying merchandise on account.

A form that lists the details of a sales return or sales allowance.

Terms that set out the time allowed for payment for a sale on account.

A person or business that has a claim to the assets of a business; a person or business to which money is owed.

Assets that are either used up or converted to cash during the normal operating cycle of the business, usually one year.

Debts of the business that must be paid within the next accounting period.

The relationship between current assets and current liabilities; calculated by dividing the dollar amount of current assets by the dollar amount of current liabilities.