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S corporation: A domestic corporation that is recognized as a regular corporation under state law but is granted special status for federal income tax purposes.

sales discount: A reduction in the selling price that is allowed if payment is received within a specified period.

Sales Journal: A special journal in which credit sales are recorded.

Sales Returns and Allowances: A contra-revenue account in which the return of, or allowance for, reduction in the price of merchandise previously sold is recorded.

sales tax payable: Money collected from customers for sales taxes, that must be remitted to local governments and other taxing authorities.

salvage, or residual, value: Estimated value or actual price of an asset at the conclusion of its useful life, net of disposal costs.

SEC (Securities and Exchange Commission): The government body responsible for regulating the financial reporting practices of most publicly owned corporations in connection with the buying and selling of stocks and bonds.

secured bonds: Bonds for which assets have been pledged in order to guarantee repayment.

Securities and Exchange Commission (SEC): The government body responsible for regulating the financial reporting practices of most publicly owned corporations in connection with the buying and selling of stocks and bonds.

segregation of duties: Strategy to provide an internal check on performance through separation of custody of assets from accounting personnel, separation of authorization of transactions from custody of related assets, separation of operational responsibilities from record keeping responsibilities.

shareholders (stockholders): Individuals or organizations that own a portion (shares of stock) of a corporation.

significant influences: Influence presumed if a company owns between 20% and 50% of another company.

social security (FICA) taxes: Federal Insurance Contributions Act taxes imposed on employee and employer; used mainly to provide retirement benefits.

solvency: A company's long-run ability to meet all financial obligations.

special journal: A book of original entry for recording similar transactions that occur frequently.

special order: An order that may be priced below the normal price in order to utilize excess capacity and thereby contribute to company profits.

specific identification: A method of valuing inventory and determining cost of goods sold whereby the actual costs of specific inventory items are assigned to them.

standard unqualified audit report: Audit report indicating that all auditing conditions have been met, no significant misstatements have been discovered and remain uncorrected, and the auditors feel the financial statements are fairly stated in accordance with generally accepted accounting principles.

stated rate of interest: The rate of interest printed on the bond.

stated value: A nominal value assigned to no-par stock by the board of directors of a corporation.

statement of cash flows: The financial statement that shows an entity's cash inflows (receipts) and outflows (payments) during a period of time.

statement of earnings (income statement): The financial statement that summarizes the revenues generated and the expenses incurred by an entity during a period of time.

statement of partners' capital: A partnership report showing the changes in the capital balances; similar to a statement of retained earnings for a corporation.

statement of retained earnings: A report that shows the changes in the Retained Earnings account during a period of time.

statement of stockholders' equity: A financial statement that reports all changes in stockholders' equity.

stock certificate: A document issued by a corporation to stockholders evidencing ownership in the corporation.

stock dividend: A pro rata distribution of additional shares of stock to shareholders.

stockholders (shareholders): Individuals or organizations that own a portion (shares of stock) of a corporation.

stock split: The replacement of outstanding shares of stock with a greater number of new shares that have a proportionately lower par or stated value.

straight-line amortization: A method of systematically writing off a bond discount or premium in equal amounts each period until maturity.

straight-line depreciation method: The depreciation method in which the cost of an asset is allocated equally over the periods of an asset's estimated useful life.

subsidiary company: A company owned or controlled by another company, known as the parent company.

subsidiary ledger: A grouping of individual accounts that in total equal the balance of a control account in the General Ledger.

sum-of-the-years'-digits (SYD) depreciation method: The accelerated depreciation method in which a constant balance (cost minus salvage value) is multiplied by a declining depreciation rate.

supplies: Materials used in a business that do not generally become part of the sales product and were not purchased to be resold to customers.

SYD (sum-of-the-years'-digits) depreciation method: The accelerated depreciation method in which a constant balance (cost minus salvage value) is multiplied by a declining depreciation rate.  

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