S Corporation
A corporation that has made an election to be taxed under the rules found in Subchapter S in the Internal Revenue Code (IRC). Primarily a corporation entity whose taxes are "passed-through" to its stockholders.
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Salary
A term used to describe compensation of management personnel for services rendered. Based on an agreed upon amount rather than by hourly wage.
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Sales allowance
A reduction in the original sales price.
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Sales discount
A reduction in the original sales price usually given as an incentive for prompt payment.
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Sales income
A misnomer for sales revenue because income is the difference between revenue and expense.
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Sales revenue
Revenue from the sale and delivery of goods and services.
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Self employment tax
Social security tax imposed on the self-employed. Currently at 15.3% which constitutes both the employer and employee portions of the tax. (7.65% each). Often referred to as SE-tax.
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Separate Entity
One of the six basic assumptions of accounting information. The assumption is that activity of a business should be kept separate from the personal activities of its owners.
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Service life
The period of time that an asset is estimated to be useful to an entity.
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Service revenue
Revenue from services rendered by an entity.
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Services
Intangible products - products
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Shareholders
The people who have been issued stock by a corporation in exchange for money or property. Same as stockholders.
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Short term
Less than one year.
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Simple interest
Interest calculated on the principal only.
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Single entry
A method of accounting that does not use a two-sided ledger to capture financial data.
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Social Security taxes
Federal tax levied on employers and employees for the purpose of providing future retirement, health, and disability benefits for employees. FICA.
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Sole proprietorship
An unincorporated business with a single owner.
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Solvency
The ability of an entity to meet its long-term debt obligations.
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Specific identification
A method of determining cost of goods of sold by specifically identifying each item of inventory purchased and sold.
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State Board of Accountancy
State regulatory authority that issues licenses to Certified Public Accountants and handles disciplinary issues.
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Statement of Cash Flow
A report that shows the inflows and outflows of cash for given accounting period.
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Statement of Income and Expense
A report that shows the revenues, expenses, and net income for a given accounting period.
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Stockholders
Shareholders
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Straight line depreciation
A method of calculating depreciation that results in an equal amount of the depreciable basis (cost) of a fixed asset over each year of its useful life.
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Subsidiary journal
A journal in which transactions are summarized and eventually recorded in the general ledger.
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Superior earnings
The excess earnings over and above normalized earnings. Goodwill.
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