INVENTORY account consisting of partially completed goods awaiting completion and transfer to finished inventory. The sale of goods in large quantities, especially to a person or COMPANY that plans to sell them at retail. Characteristic of a SECURITY, commodity, or MARKET to rise or fall sharply in price within a SHORT-TERM period. A technique for analyzing FINANCIAL STATEMENTS that uses percentages to show the relationships of each stated item to the total, which is 100 percent of the figure in a single statement.
Management Accounting
It offers features such as tracking expenses and income, managing invoices, budgeting and forecasting, and connecting with payroll services to help streamline the financial side of their business. Additionally, its user-friendly music business accountant interface and built-in reporting features make it easy to use. A) Grant date – The date at which an employer and an employee reach a mutual understanding of the key terms and conditions of a share-based payment award.
- Measure of risk that errors exceeding a tolerable amount will not be prevented or detected by an entity’s internal controls.
- An expense that has occurred but is not recognized in the accounts.
- It’s one that keeps the accounting terminology simple, provides an easy user interface, and an in-house customer support team that’s ready to help.
- Atlanta-based Alexis Louis (fka Alexis Kimbrough) is the founder of Growth Group, a music-focused accounting firm that works with musicians, record labels, and recording studios.
- (1) Records kept by the AUDITOR of the procedures applied, the tests performed, the information obtained, and the pertinent conclusions reached in the course of the AUDIT.
- I work during the typical work week and put in the necessary hours to produce value for the people who have entrusted me with their finances.
Statements on Auditing Standards (SAS)
Signed, written order by which one party (drawer) instructs another party (drawee) to pay a specified sum to a third party (payee). A complete and final set of audit documentation should be assembled for retention as of a date not more than 45 days after the report release date. A LIABILITY for payment of a COMPANY’s earnings to its shareholders. Arrangement in which the TRUSTEE has the authority to make INVESTMENT decisions and has control over investments within the framework of the TRUST instrument. This exists when a control necessary to meet the control objective is missing or an existing control is not properly designed so that even if the control operates as designed, the control objective is not always met.
Spot Market
Material event that occurs after the end of the accounting period and before the publication of an entity’sFINANCIAL STATEMENTS. Such events are disclosed in the notes to the financial statements. A U.S. taxpayer that pays or accrues income tax to a foreign country may elect to credit or deduct these taxes in a determinable us dollar amount.
Financial and informational DISCLOSURES required by the SEC in order to comply with certain sections of the Securities Act of 1933 and the Securities and Exchange Act of 1934. Some of the more common filings that publicly owned companies must submit are the FORM 10-K, FORM 10-Q and FORM 8-K. Recurring financial activities reflected in the accounting records in the normal course of business. A useful measure of overall operational efficiency when compared with the prior periods or with other companies in the same line of business. Ratio measure of the profits achieved by a firm through its basic operations.
- Percentage of a firm’s profits that is paid out to shareholders in the form of DIVIDENDS.
- A ratio used to indicate the number of times a COMPANY’s average inventory is sold during an accounting period.
- Individual who is trained to develop and implement financial plans for individuals, businesses, and organizations, utilizing knowledge of income and estate tax, investments, risk management analysis and retirement planning.
- Agreement, usually a written document, that sets out the rules by which a LIMITED LIABILITY COMPANY (LLC) is to be operated.
- Relationship between two or more persons based on a written, oral, or implied agreement whereby they agree to carry on a trade or business for profit and share the resulting profits.
- Realistic costs for direct materials, direct labor, and factory overhead that have been determined before they occur.
An accreditation conferred by the Institute of Management Accountants that indicates the designee has passed an examination and attained certain levels of education and experience in the practice of accounting in the private sector. A multicolumn journal used to record sums of cash paid out for expenses. Net of cash receipts and cash disbursements relating to a particular activity during a specified accounting period. Outlay of money to acquire or improve capital assets such as buildings and machinery. The process of recording financial transactions and keeping financial records. Bid is the highest price a prospective buyer is prepared to pay at a particular time for a trading unit of a given SECURITY; asked is the lowest price acceptable to a prospective seller of the same security.
Net Present Value Method
Funds used by a not-for-profit organization to account for all resources used for the development of a land improvement or building addition or renovation. Sophisticated model of the relationship between expected risk and expected return. Financial plan that serves as an estimate of future cost, REVENUES or both. Amount, net or CONTRA ACCOUNT balances, that an ASSET or LIABILITY shows on the BALANCE SHEET of acompany.
Will You Pass The Music Retail Financial IQ Test?
Method of lowering or raising an object’s CURRENT VALUE by adjusting its acquisition cost to reflect its market value by use of a CONTRA ACCOUNT. Resources of a not-for-profit entity that have no restrictions as to use or purpose. A BALANCE sheet ACCOUNT for entering increases or decreases in the value of long-term investments. AUDIT opinion not qualified for any material scope restrictions nor departures from GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP). The AUDITOR may issue an unqualified opinion only when there are no identified material weaknesses and when there have been no restrictions on the scope of the auditor’s work.
Indirect Manufacturing Costs
- Our royalty experts undertake audits of record companies, music publishers and other companies within the music industry.
- These procedures involve questions concerning the company and its business, products, competitive position, recent financial and other developments and prospects.
- DEFINED CONTRIBUTION PLAN characterized by the setting aside of a portion of an entity’s profits in participant’s accounts.
- Certain taxpayers may not be entitled to use the standard deduction.
- This unique trust arrangement is specifically provided for in the INTERNAL REVENUE CODE.
- Legal interest of one person in the property of another to assure performance of a second person under a contract.
Building strong relationships with your clients is essential to your success as a music accountant. This means taking the time to understand their needs and goals, and providing them with the support and guidance they need to achieve those goals. Below are some of the many careers a music business/management major can pursue. The Music CPA provides entertainers an independent outlet to help manage or review finances. The difference between The Music CPA and other professionals in the industry is we do not share in a percentage of your entertainment revenues.
Your Potential Income
Fixed Asset – Any tangible ASSET with a life of more than one year used in an entity’s operations. Selling a RECEIVABLE at a discounted value to a third party for cash. Money or property put into the custody of a third party for delivery to a GRANTEE, only after fulfillment of specified conditions. Raising the money by issuing shares of COMMON STOCK or PREFERRED STOCK.