Glossary – Accounting
There are 11 names in this directory beginning with the letter W.
Wages
The compensation earned by employees who are paid on an hourly basis. It is common for production workers to earn wages, since they are usually paid via an hourly rate.
Warranties
A promise to repair, replace, refund, etc. a product during a specified period. The company making the promise has a contingent liability and a warranty expense that should be recorded at the time the product is sold.
White-collar worker
A term often used when referring to office workers, managers, professionals, and executives. These employees’ pay is often stated as a salary for a month (and not as an hourly pay rate).
Window dressing
Actions taken or not taken prior to issuing financial statements in order to improve the amounts appearing in the financial statements.
Withdrawals by owner
Also referred to as draws. These are a reduction of owner’s equity, but are not a business expense and they do not appear on the sole proprietorship’s income statement.
Withholdings
The term associated with payroll deductions from an employee’s gross wages or gross salary.
Write-off
The reduction or removal of an asset amount. For example, an account receivable will be removed or written off if the customer is not able to pay the amount owed to the company.
