Vocabulary UNIT 5 CHAPTER 11

Vocabulary UNIT 5 CHAPTER 11 - Gross pay The total earnings...

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Vocabulary Words UNIT 5 – Chapter 11: Contingent liabilities Liabilities that may arise from past transactions if certain events occur in the future. Defined benefit plan A pension plan that promises employees a fixed annual pension benefit at retirement, based on years of service and compensation levels. Defined contribution plan A pension plan that requires a fixed amount of money to be invested for the employee's behalf during the employee's working years. Employee's earnings record A detailed record of each employee's earnings. FICA tax Federal Insurance Contributions Act tax used to finance federal programs for old-age and disability benefits (social security) and health insurance for the aged (Medicare). Fringe benefits Benefits provided to employees in addition to wages and salaries.
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Unformatted text preview: Gross pay The total earnings of an employee for an employee for a payroll period. Net pay Gross pay less payroll deductions; the amount the employer is obligated to pay the employee. Payroll The total amount paid to employees for a certain period. Payroll register A multicolumn report used to assemble and summarize payroll data at the end of each payroll period. Pension A cash payment to retired employees. Quick assets Cash and other current assets that can be quickly converted to cash, such as marketable securities and receivables. Quick ratio A financial ratio that measures the ability to pay current liabilities with quick assets (cash, marketable securities, accounts receivable)....
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This note was uploaded on 10/05/2010 for the course ACCOUNTING n/a taught by Professor N/a during the Summer '09 term at Kaplan University.

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Vocabulary UNIT 5 CHAPTER 11 - Gross pay The total earnings...

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