Consumers Math Definition of Terms
Cash Budget – A plan of the use of one’s money
Cash Book – Actual records of daily expenditures
Inventory – a complete and detailed list of articles
Beginning Inventory – The goods on hand at the start of business
Purchases – Act of buying
Profit – The gain from a business
Gross – Whole, total
Net – Remaining amount after deductions
Sales – Total volume of selling
Operating expenses – Expenses incurred in the process of disposing of the goods bought such as rentals, taxes, wages, etc.
Cost of goods sold – It includes not only the actual amount paid for the goods but other expenses like transportation or freight charges.
Check book – A book of blank checks on a bank usually with record stubs.
Bank Statement – A monthly report sent by a bank to its depositors having a checking account.
Service Charge – A fee charged by a bank to its depositors handling their accounts.
Check – A written order made by a depositor directing his bank to pay a person or a business firm a specified sum of money.
Outstanding checks – A check issued but is still in the possession of the payee.
Cancelled Check – a check to which payment has been made
No Sufficient Funds check – A check issued originally by a person whose accounts cannot cover the value of the check.
Reconciling the bank balance – The process of bringing the checkbook balance and the bank statement balance into agreement with each other.
Deposit in transit – Deposits made too late to be included in the bank statement.
Salary – It refers to a fixed compensation for regular work and often paid at longer intervals.
Wages – It is an amount paid for a certain work usually on an hourly basis.
Overtime – Excess of regular hours worked.
Reciprocal – When one number is multiplied by another number and their product is one, the first is the reciprocal of the second or vice versa.