accounting vocab

discount period

The period of time within which an invoice must be paid in order to receive an amount off the invoice must be paid in order to receive an amount off the invoice price is called a (n)

bank service charge

A _____________ is a fee charged by the bank for maintaining bank records and for processing bank statement items from the depositor.

NSF check

A check returned by the bank because the drawer's checking account does not have sufficient funds to cover the amount of the check

footing

A column total written in small pencil figures is called a

general journal

A correcting entry would be recorded in the

sales allowance

A price reduction offered to a customer by a business for keeping damaged or defective merchandise is a(n)

adjustment

A(n)__________ is an amount added to or subtracted from an account balance to bring it up-to-date.

check

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

quarterly basis

Employee's earnings records are kept on a

Form W-2

Employers must provide each employee with a _____________ Which summarizes the employee's earnings and taxes withheld.

reconciling the bank statement

Is the process of determining any differences between a bank statement's balance and the checkbook balance.

cost of merchandise

Purchases Discounts is classified as a

payee

The _____________ is the person or business to whom a check is written.

exemption

The amount deducted from gross earnings for federal income tax each pay period depends on the total earnings, marital status, and number of ____________ an employee claims.

net pay

The amount of money actually received by the employee after all deductions are subtracted is called

pay period

The amount of time for which an employee is paid is called the

packing slip

The form that lists the items included in a shipment of merchandise to a buyer is the

sales slip

The source document for a transaction recorded for sales

FICA

Which of the following is paid by both the employer and the employee on the employee's gross earnings

accumulated earnings

_________are the year-to-date gross earnings of an employee.