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Chapter 5 Vocabulary
NALS Chapter 5 Vocabulary Words
Term | Definition |
---|---|
Accounting equation | The relationship between the three basic accounting elements; assets equal liabilities plus owner's equity; |
Balance | The difference between total debits and credits in an account |
Bank draft | a check issued by a bank on its funds in another bank, usually located in another city |
Blank endorsement | the simple signature of the payee which makes the check payable to bearer; also referred to as endorsement in blank |
Block billing | refers to the practice of grouping all time spent on a project during the course of the day into one entry, regardless of the number or variety of tasks performed. |
Cashier's check | a check issued by a bank that reduces the drawer's account by the amount of the check |
Circular E-The Employer's Tax Guide | a booklet published periodically by the Internal Revenue Service as a guide for the bookkeeper regarding payroll and withholding taxes, which can also be found online |
Credit | an entry made on the right side of an account |
Debit | An entry made on the left side of the account |
Drawee | Person to whom a check is written |
Drawer | Person by whom a check is written and upon whose funds the check is drawn |
Employer Identification Number | a number assigned to an employer by the Internal Revenue Service that must be used on all reports to the IRS |
Fair Labor Standards Act | Among other things, minimum wage, overtime pay, hours worked, etc |
For Deposit Only | Restrictive endorsement used on checks to be deposited |
Matters | A term that refers to an individual piece of legal work for a given client; clients may have only one matter or many |
Money Order | A payment document that can be purchased at a United States Post office, bank and many stores to use in place of a check, paid for with cash |
Payee | Person to whom a promissory note, bank draft, or check is issued |
Payroll records | the records listing employees, earning, deductions, and withholdings |
Principal | The amount a borrower promises to pay that is written on the face of a note |
Pro Bono | Describes legal work or services performed free of charge |
Reconciliation | To bring a bank statement and check register into agreement; a process which ensures the record of the bank and the depositor are In agreement |
Retainer | An advance payment made to cover anticipated work or costs. |
Written down | Time that is reduced or removed from a bill to create a discounted bill |
Withholding taxes | funds withheld by the employer from the employee's payroll check for payment of federal, state, and local income taxes and Social Security taxes |