IMG_2400.jpeg

# Glossary of Accounting Terms ## F * **Factory overhead:** Costs associated with the manufacturing process. ## G * **GAAP:** Generally Accepted Accounting Principles. * **General ledger:** A book or file containing all accounts—except those in subsidiary ledgers—that represents a business's com...

# Glossary of Accounting Terms ## F * **Factory overhead:** Costs associated with the manufacturing process. ## G * **GAAP:** Generally Accepted Accounting Principles. * **General ledger:** A book or file containing all accounts—except those in subsidiary ledgers—that represents a business's complete financial position. * **General partner:** A co-owner of a company with unlimited liability. * **Generally accepted accounting principles:** Guidelines established by professional accountants for preparing accounting records and financial statements. * **Going concern concept:** A concept indicating the assumption that a company has indefinite operations. ## I * **Imprest method:** Petty cash handling where cash removal is recorded only when the fund is replenished. * **Income:** An increase in equity resulting from the sale of goods/services. Equivalent to revenue. * **Income sharing ratio:** The percentage of net income distributed to partners based on the pre-determined ratio. ## H * **Harmonized sales tax (HST):** A combined provincial sales tax and Goods and Services tax (GST) in specific Canadian provinces ## Others * **Expense:** A decrease in equity resulting from costs of materials and services used to produce revenue. * **Fixed asset:** A long-term asset used in producing goods/services. * **Financial analysis:** Analysis of income statements and balance sheets. * **Fiscal period** : Accounting period. * **Five-journal system:** An accounting system using five journals to record different transactions. * **Float:** A small quantity of cash-on-hand for transactions. * **Forwarding:** Continuing an account or journal on to the next page. * **Freight-in:** Transportation costs for incoming merchandise. * **Full disclosure principle:** A GAAP appendix concept. * **Fundamental accounting equation:** An equation stating that Total Assets = Total Liabilities + Owner's Equity. (A-L = OE). * **General Ledger:** A book or file containing all the accounts of the business but not those in subsidiary ledgers. * **Goods in process:** Raw materials, direct labor, or factory overhead applied to goods that are not yet finished. * **Goodwill:** An intangible asset whose value is greater than the sum of its net assets. * **Gross pay:** Earnings before deductions. * **Gross profit:** The excess of net sales over the cost of goods sold. * **GST (Goods & Services Tax):** Value-added tax in Canada