Wiley GAAP 2008

Definitions of Terms

Accumulated benefits	Employee benefits that can be carried over into the next year but that expire upon termination of employment.
Contingency	An existing condition, situation, or set of circumstances involving uncertainty as to possible gain or loss that will ultimately be resolved when one or more future events occur or fail to occur.
Current liabilities	Obligations whose liquidation is reasonably expected to require the use of existing resources properly classified as current assets or the creation of other current liabilities. Obligations that are due on demand or will be due on demand within one year or the operating cycle, if longer, are current liabilities. Long‐term obligations callable because of the debtor's violation of a provision of the debt agreement are current liabilities unless specific FAS 78 conditions are met.
FICA	Social security taxes levied upon both employees and employers.
FUTA	Social security tax levied upon employers to finance the administration of federal unemployment benefit programs.
Indirect guarantee of indebtedness of others	A guarantee under an agreement that obligates one entity to transfer funds to a second entity upon the occurrence of specified events under conditions whereby (1) the funds are legally available to the creditors of the second entity, and (2) those creditors may enforce the second entity's claims against the first entity.
Operating cycle	The average length of time necessary for an enterprise to convert inventory to receivables ...