packing slip A form that lists the items included in the shipment.
Paid-in Capital in Excess of Par The account
that represents the amount of cash received by a corporation over the stock's
par value.
par value The dollar amount assigned to
each share of stock when the corporation's charter is approved; used to determine
the amount credited to the capital stock account.
partnership Business owned by two or more
persons, called partners, who agree to operate the business as co-owners.
partnership agreement A written document
that sets out the terms under which the partnership will operate.
partnership liquidation Ending a partnership
involves winding up the affairs of the partnership business.
pay period The amount of time over which
an employee is paid.
payee The person or business to whom a
check is written or a note is payable.
payroll A list of the employees and the
payments due to each employee for a specific pay period.
payroll clerk Responsible for preparing the
payroll.
payroll register A form that summarizes information
about employees' earnings for each pay period.
Payroll Tax Expense Account where the employer's
payroll taxes are recorded.
percentage of net sales method A method
of estimating uncollectible debts expense in which a business assumes that a certain
percentage of each year's net sales will be uncollectible.
periodic inventory system An inventory system
in which the number of items on hand is determined by a physical count.
permanent accounts Accounts that are continuous from one accounting
period to the next; balances are carried forward to the next period (for example,
assets, liabilities, and owner's capital accounts).
perpetual inventory system An inventory system in which a constant,
up-to-date record of the amount of merchandise on hand is maintained.
personal interest tests Tests that uncover
personal preferences you can use to research potential careers and determine which
ones match your particular interests.
personality A set of unique qualities that
makes us different from all other people.
petty cash disbursement A payment made from
the petty cash fund.
petty cash fund Cash kept on hand for making
small, incidental cash payments.
petty cash register A record of all disbursements
made from the petty cash fund.
petty cash requisition A form requesting
money to replenish the petty cash fund.
petty cash voucher A form that provides proof
of payment from the petty cash fund.
petty cashier The person responsible for maintaining the petty cash
fund and for making petty cash disbursements.
physical inventory An actual count of all
the merchandise on hand and available for sale.
plant assets Long-lived assets that are used
in the production or sale of other assets or services over several accounting
periods.
point-of-sale terminal Electronic cash register.
post-closing trial balance Prepared to verify
that total debits equal total credits after the closing entries are posted.
posting The process of transferring information
from the general journal to individual general ledger accounts, the fourth step
in the accounting cycle.
preferred stock Stock whose owners have
certain privileges over common stockholders.
premium The amount paid for insurance.
principal The amount of money being borrowed
on a promissory note.
proceeds The amount of cash actually received
by a borrower on a non-interest-bearing note payable.
processing stamp A stamp placed on a creditor's
invoice that outlines the steps to be followed in processing the invoice for payment.
profit The amount of revenue earned above
the expenses incurred to operate the business.
profitability ratio Ratios used to evaluate
the earnings performance of a business during the accounting period (for example,
return on common stockholders' equity).
promissory note A written promise to pay
a certain amount of money at a specific future time.
property Items of value that are owned or
controlled by a business; economic resources of a business.
property rights Creditors' and owners' financial
claims to the assets of a business.
proving cash The process of determining
whether the amounts of cash recorded in the accounting records of a business and
in its checkbook agree.
proving the ledger Adding all debit balances
and all credit balances of ledger accounts and then comparing the two totals to
see whether they are equal.
proxy A document that transfers a stockholder's
voting rights to someone else.
public accounting Accounting services that
range from tax preparation to merger and acquisition consultation; a variety of
accounting services offered to businesses.
publicly held corporation A corporation whose
stock is widely held, has a large market, and is usually traded on a stock exchange.
purchase order A written offer to a supplier
to buy certain items.
purchase requisition A written request that
a certain item or items be ordered.
Purchases account The account used to record
the cost of merchandise purchased during a fiscal period.
purchases allowances A price reduction given
when a business keeps unsatisfactory merchandise it has bought.
purchases discount Term used by the buyer
to refer to a cash discount offered for early payment.
purchases journal A special journal used
to record all transactions in which items are bought on account.
purchases returns The return to the supplier
for full credit of merchandise bought on account.
