Subject Index

Accounting Equation

The fundamental relationship Assets = Liabilities + Equity that must always balance in double-entry bookkeeping.

Accounting Period

A defined span of time for which financial records are kept and reports are prepared, such as a month, quarter, or year.

Accruals

Revenues earned or expenses incurred that have not yet been recorded in cash, such as wages earned but not yet paid.

Accruals and Deferrals: Timing Is Everything

Accumulated Depreciation

The total depreciation expense recorded for an asset since it was acquired; a contra-asset account that reduces book value.

Acknowledgments

Credits and acknowledgments

Adjusting Entries

Journal entries made at the end of an accounting period to update accounts for accruals, deferrals, and depreciation.

Analysis ToolPak

An Excel add-in that provides advanced statistical tools such as descriptive statistics, histograms, and regression analysis.

Asset Register

A detailed record of all fixed assets owned by a business, including cost, acquisition date, useful life, depreciation method, and current book value.

Assets

Resources owned by a business that have future economic value, such as cash, equipment, or inventory.

Audit

An independent examination of financial records and systems to verify accuracy and compliance with standards.

Balance Sheet

A financial statement showing a company's assets, liabilities, and equity at a specific point in time.

Bank Reconciliation

The process of comparing internal payroll records against bank statements to identify timing differences and errors.

Bilingual Glossary

Study key terms in English and Chinese

Book Value

The net value of an asset on the balance sheet, calculated as Original Cost minus Accumulated Depreciation.

Box Plot

A chart that displays the five-number summary (minimum, Q1, median, Q3, maximum) and highlights outliers visually.

Break-Even Point

The sales volume at which total revenue equals total costs, resulting in zero profit.

Build Asset Register and Depreciation Schedule

Build First Automation Layer

Build Self-Auditing Formulas and Error Flags

Build the Balance Sheet and Retained Earnings

Build the Income Statement

Build the Inventory Method Workbook

Build the Scenario-Switch Dashboard

Capital Expenditure

Money spent to acquire or improve a long-term asset, recorded on the balance sheet rather than as an immediate expense.

Capstone Project

Year-end capstone project

Cash Flow

The movement of money in and out of a business; positive cash flow means more money coming in than going out.

Cash Flow Statement

A financial statement showing how cash moved in and out of a business during a period, organized by operating, investing, and financing activities.

Chart of Accounts

An organized list of all accounts used by a business, each with a unique number and category.

Classifying Transactions: How Business Events Change the Accounting Equation

Closing Entries

Journal entries that transfer temporary account balances (revenue, expenses, dividends) to retained earnings, resetting them to zero for the next period.

Closing Entries: Resetting Temporary Accounts

Complete Manual Month-End Flow

Complete the Workbook and Rehearse the Recommendation

Complete Workbook and Depreciation Recommendation

Complete Workbook and Rehearse Demo

Conditional Formatting

An Excel feature that automatically changes cell appearance based on rules, such as highlighting values above a threshold.

Contra Account

An account that reduces the balance of a related account, such as Accumulated Depreciation reducing Fixed Assets.

Contribution Margin

The amount each unit sold contributes toward covering fixed costs and generating profit, calculated as Selling Price − Variable Cost per Unit.

Cost of Goods Sold (COGS)

The total cost of inventory items sold during a period, calculated as Beginning Inventory + Purchases − Ending Inventory.

Current Ratio

A liquidity measure calculated as Current Assets ÷ Current Liabilities; a ratio above 1 means the business can cover short-term debts.

CVP Analysis

Cost-Volume-Profit analysis; a method that examines how changes in costs and sales volume affect a company's profit.

CVP Model Construction

Data Cleaning

The process of detecting and correcting errors, inconsistencies, and missing values in raw data before analysis.

Data Cleaning and Analysis

Data Table

An Excel what-if analysis tool that shows how changing one or two variables affects the result of a formula.

Data Tables: Sensitivity Analysis

Data Validation

An Excel feature that restricts what users can enter into a cell, such as limiting entries to a dropdown list or a number range.

Debit, Credit, and Trial Balance

Debits and Credits

The two sides of every journal entry. Debits increase assets and expenses; credits increase liabilities, equity, and revenue.

Deductions and Net Pay

Deferrals

Cash received or paid before the related revenue is earned or expense is incurred, such as prepaid insurance.

Depreciation

The systematic allocation of a fixed asset's cost over its useful life, reflecting wear and tear or obsolescence.

Depreciation Schedule

A table showing the annual depreciation expense, accumulated depreciation, and book value for each asset over its useful life.

Descriptive Statistics

Summary measures that describe the central tendency and spread of a data set, such as mean, median, and standard deviation.

Descriptive Statistics: What Does Normal Look Like?

Double-Declining Balance

An accelerated depreciation method that applies twice the straight-line rate to the asset's book value each year.

Double-Declining Balance and Method Comparison

Double-Entry Bookkeeping

A system where every transaction is recorded with equal debits and credits, keeping the accounting equation in balance.

Employer Tax Contribution

Taxes the employer must pay in addition to employee wages, such as Social Security, Medicare, and unemployment insurance.

Ending Inventory

The value of inventory remaining at the end of an accounting period.

Excel Model: Move Manual Ledger to Excel Table

Excel Table

A structured range of data in Excel with named columns, auto-expanding formulas, and built-in formatting.

Expenses

Costs incurred in the process of earning revenue, such as rent, wages, or supplies.

FIFO

First-In, First-Out; an inventory method that assumes the oldest items purchased are the first ones sold.

FIFO and LIFO: Two Ways to Value the Same Inventory

Final Presentation, Submission, and Reflection

Final Presentation: Defend Ending Inventory, Method Choice, and Business Recommendation

Financing Activities

The section of the cash flow statement that reports cash from or paid to investors and creditors, such as issuing stock or repaying loans.

Fixed Assets

Long-term tangible assets used in business operations that are not expected to be converted to cash within one year, such as buildings, vehicles, and equipment.

Fixed Costs

Expenses that remain constant regardless of production or sales volume, such as rent or insurance.

FORECAST.LINEAR

An Excel function that predicts a future value along a linear trend based on existing data points.

Forecasting Logic: Predicting the Future from Past Data

GAAP

Generally Accepted Accounting Principles; the standard framework of guidelines for financial accounting used in the United States.

Goal Seek

An Excel tool that finds the input value needed to achieve a desired result in a formula.

Goal Seek: Hit Your Profit Target

Gross Pay

Total earnings before any deductions are taken out, including regular wages, overtime, and tips.

Group Project Build: Complete the Workbook and Rehearse the Recommendation

Group Project Kickoff: New Business, New Starter Workbook, Same Workbook Logic

Histogram

A bar chart that shows the frequency distribution of a continuous data set, revealing its shape and spread.

Hourly Wage

Pay calculated based on the number of hours worked, as opposed to a fixed salary.

IFERROR

An Excel function that returns a custom result when a formula produces an error, such as showing 'Not Found' instead of #N/A.

IFS Function

An Excel function that tests multiple conditions and returns the value for the first true condition.

Income Statement

A financial statement showing revenue, expenses, and net income over a specific period; also called the profit and loss statement.

INDEX/MATCH

A powerful Excel lookup combination where MATCH finds a position and INDEX returns the value at that position in another range.

Indirect Cash Flow Statement and Ratio Interpretation

Integration & Dashboard: Decision-Ready Three‑Statement Model

Integration & Presentation: Decision‑Ready Dashboard

Introduction: Sarah's Challenge

Inventory Cost Flow Foundations: Beginning Inventory, Purchases, and COGS

Inventory Turnover Ratio

A measure of how many times inventory is sold and replaced during a period, calculated as COGS ÷ Average Inventory.

Investing Activities

The section of the cash flow statement that reports cash used for or received from buying and selling long-term assets.

Investor-Facing Summary & Workbook Polish

Journal Entry

A record of a business transaction showing which accounts are debited and credited and by what amounts.

KPI Dashboard

A visual display of key performance indicators such as ratios, trends, and targets, often built with Excel charts and conditional formatting.

Launch & Explore: The Payroll Cash Crunch

Launch: The Investor Question

Launch: The Month-End Closing Crisis

Launch: The Pricing Problem

Launch: Weekend Profit vs. Waste

Ledger

A complete record of all financial transactions organized by account, used to prepare financial statements.

Liabilities

Amounts a business owes to outside parties, such as loans, accounts payable, or unpaid taxes.

LIFO

Last-In, First-Out; an inventory method that assumes the most recently purchased items are the first ones sold.

Linear Regression

A statistical method that models the relationship between two variables as a straight line, used for forecasting.

Link the Three Statements: Cross‑Sheet References and Integrity Checks

Macros

A recorded sequence of Excel actions that can be replayed to automate repetitive tasks.

Margin

The percentage of the selling price that is profit, calculated as (Selling Price − Cost) ÷ Selling Price.

Markup

The percentage added to the cost of a product to determine its selling price, calculated as (Selling Price − Cost) ÷ Cost.

Markup vs. Margin Concepts

Matching Principle

The accounting rule that expenses should be recorded in the same period as the revenues they helped generate.

Mean

The arithmetic average of a data set, calculated by summing all values and dividing by the count.

Median

The middle value in a sorted data set; half the values are above it and half are below it.

Method Comparison and Investor-Ready Summary

Mock Panel & Revision: Presentation Rehearsal

Mock Panel & Revisions: Expert Critique Session

Named Ranges

A descriptive name assigned to a cell or range of cells in Excel, making formulas easier to read and maintain.

Net Income

The profit remaining after all expenses are subtracted from revenue; also called the bottom line.

Net Pay

The amount an employee actually receives after all withholdings and deductions are subtracted from gross pay.

Operating Activities

The section of the cash flow statement that reports cash generated or used by core business operations.

Outliers

Data points that fall far outside the normal range of a data set and may distort statistical analysis.

Outliers and Data Quality

Overtime Pay

Additional compensation for hours worked beyond the standard workweek, typically at 1.5 times the regular rate.

Owner's Equity

The owner's residual claim on business assets after all liabilities are paid; also called net worth or capital.

Pay Stub Studio: Taxes, Net Pay, and Proof

Payroll Register

A summary report listing all employees, their gross pay, deductions, and net pay for a specific pay period.

Payroll Timing and Liabilities

PBL Milestone 2: Prototype + Rehearsal (PayDay Simulator)

PBL Milestone 3: Final Innovation Fair Demo

PBL Milestone 3: Fixed‑Asset Recommendation Presentations

Permanent Accounts

Accounts whose balances carry forward to the next period, such as assets, liabilities, and equity.

Polish Wizard Interface: Validation, Controls, and Auditability

POS Data

Transaction records captured at the point of sale, including items sold, prices, quantities, and timestamps.

Power Query

An Excel feature that imports, transforms, and combines data from external sources such as web pages or CSV files.

Preface

Course introduction and reading guide

Prepaid Expenses

Payments made in advance for goods or services to be received in the future, recorded as an asset until used.

Presentation Prep: KPI Dashboard Design

Project Kickoff — Your Payroll Workbook

Project Kickoff: Group Fixed-Asset Datasets

Project Kickoff: Group Workbook Setup and First Analysis

Project Kickoff: Team Setup

Project Kickoff: Your Group's Month-End Scenario

Project Milestone 1: Kickoff & Workbook Setup

Project Milestone 2: Complete Workbook & Rehearse

Project Milestone 3: Final Presentation & Submission

Project Rehearsal: Café Analysis Walkthrough

Project Rehearsal: Depreciation Workbook with Shared Data

Project Rehearsal: Guided Practice with Shared Data

Project Rehearsal: One Shared Dataset, One Shared Workbook

Project Rehearsal: Shared Data, Shared Standard

Project Rehearsal: Shared Payroll Workbook Audit

Project Rehearsal: Shared Workbook, Evidence Chain, and Quality Standard

Project Rehearsal: Three-Statement Workbook Audit

Public Presentation: Café Management Showcase

Public Presentation: Demo Day Investor Showcase

Public Presentation: YouTube Publication & Business Q&A

Retained Earnings

The cumulative net income kept in the business after dividends are paid; links the income statement to the balance sheet.

Return on Assets (ROA)

A profitability measure calculated as Net Income ÷ Total Assets; shows how efficiently a company uses its assets to generate profit.

Revenue

Money earned from selling goods or services before any expenses are subtracted.

Revenue Recognition

The accounting principle that revenue is recorded when it is earned and realizable, not necessarily when cash is received.

Salaried Employee

An employee who receives a fixed amount of pay per period regardless of hours worked.

Salvage Value

The estimated amount a fixed asset can be sold for at the end of its useful life.

Sarah's Equipment Purchase — Why Long-Term Assets Are Different

Scatterplot

A chart that plots pairs of numeric values as points on a grid, used to visualize the relationship between two variables.

Scenario Comparison & Sensitivity Reasoning

Schedule-to-Pay: Building the Weekly Labor Engine

Skill Introduction: Gross to Net Calculations

Specific Identification

An inventory method that tracks the actual cost of each individual item sold, used for high-value or unique products.

Specific Identification and Weighted Average

Standard Deviation

A measure of how spread out data values are from the mean; a larger value means more variability.

Straight-Line Depreciation

A depreciation method that allocates equal expense each period: (Cost − Salvage Value) ÷ Useful Life.

Straight-Line Depreciation

Subject Index

Search replacement — find any page by keyword

SUMIF

An Excel function that adds cells meeting a single criterion, such as summing all debits for a specific account.

SUMIFS

An Excel function that adds cells meeting multiple criteria, such as summing expenses for a specific department and month.

SUMPRODUCT

An Excel function that multiplies corresponding values in arrays and returns the sum of those products.

SWITCH Function

An Excel function that compares a value against a list of possible results and returns the corresponding match.

T-Account

A visual tool shaped like a 'T' used to analyze debits on the left side and credits on the right side of an account.

Tax Tables

Published schedules that determine how much income tax to withhold based on an employee's filing status and pay amount.

Temporary Accounts

Accounts that track activity for one accounting period and are closed to zero at period end, such as revenue and expense accounts.

Text to Columns

An Excel tool that splits text in one column into multiple columns based on a delimiter such as a comma or space.

Trial Balance

A report listing all ledger account balances to verify that total debits equal total credits.

TRIM Function

An Excel function that removes extra spaces from text, leaving only single spaces between words.

Unearned Revenue

Cash received before services are performed or goods are delivered; recorded as a liability until earned.

Unit 1: Smart Ledger Launch

Unit 2: Month-End Wizard

Unit 3: Three-Statement Storyboard

Unit 4: Data-Driven Café

Unit 5: PayDay Simulator

Unit 6: PriceLab Challenge

Unit 7: Inventory Accounting

Unit 8: Fixed Assets and Depreciation

Unit Launch: Sarah's Inventory Problem

Useful Life

The estimated period over which a fixed asset is expected to be productive before it is retired or replaced.

Variable Costs

Expenses that change in direct proportion to production or sales volume, such as raw materials or packaging.

VBA

Visual Basic for Applications; a programming language built into Excel used to write custom automation and user forms.

Waste Percentage

The proportion of purchased inventory that is discarded before being sold, calculated as (Wasted Units ÷ Total Units) × 100.

Weighted Average Cost

An inventory method that assigns the same average cost to every unit, calculated as Total Cost of Goods Available ÷ Total Units Available.

When Does a Cost Become an Asset? — Capitalization, Useful Life, and Salvage Value

Withholdings

Amounts deducted from an employee's gross pay for taxes, insurance, retirement, or other obligations.

Working Capital

The difference between current assets and current liabilities; measures a company's short-term financial health.

XLOOKUP

An Excel function that searches a range for a value and returns a corresponding result from another range, replacing VLOOKUP.

Z-Score

A measure of how many standard deviations a data point is from the mean; values beyond ±2 are often considered unusual.