Reserve Fund. Cash set aside out of the general funds, usually measured by a reserve (credit), both the fund and the reserve being created for some specific purpose. The reserve (credit) represents the profits withheld, while the fund shows the amount of cash available for the specific purpose.

Revenue Account. An account which relates to profits and losses, income and expenditures, as distinguished from capital accounts which relate to assets and liabilities.

Revenue Accrued. That which has been earned since the last receipt of revenue but is not due and has not been received.

Revenue Balance Sheet. In municipal accounting, a Balance Sheet of current assets and liabilities, showing cash and amounts due from current revenues and the liability thereon due to appropriations.

Revenue Expenditures. Expenditures made in connection with the running expenses of the legitimate business of the firm or corporation concerned. Expenditures that only have the effect of putting the earning power of the undertaking upon the same footing as that which had previously obtained, must be charged against revenue.

Revenue Receipts. They are distinguished from capital receipts by being exclusively derived from the sale or exchange of the commodities which the company was organized to buy and sell, the excess of receipts over expenditures constituting net profit or added actual capital. Receipts derived as the direct result of trading, as distinguished from capital receipts resulting from the sale of capital stock, or proceeds of bonds, mortgages, etc.

Secret Reserves. Values of assets in excess of those indicated by the Balance Sheet.

Serial Bonds. An issue of bonds payable in instalments.

Shipment Account. Corresponds to "Adventure Account," but is the account on the books of the consignee.

Single Name Paper. A note for which a single individual, firm, or corporation is responsible for payment; a note bearing but one signature and without endorsers.

Sinking Fund. A certain sum set aside each year, that accumulated at compound interest, will be sufficient to provide for the payment of bonds or other obligations maturing at some future time.

Statement of Affairs. An exhibit of the assets and the liabilities of an insolvent debtor, so arranged as to show on one side all the assets of the concern with the amounts they are expected to realize extended into another column, and on the other side all the concern's gross liabilities with the amount expected to rank carried into a separate column.

Statement of Assets and Liabilities. A statement of financial condition of a solvent concern, where the books are kept by single entry, is best designated as a "Statement of Assets and Liabilities."

Statement of Income and Expense. A statement which shows the income earned and expenses incurred during a certain period, it being immaterial whether or not the items are actually received or disbursed during that period.

Statement of Receipts and Disbursements. A statement arranged in report form, showing respectively with regard to cash, the balance at the beginning of a period, the classified receipts and disbursements during the period, and the balance remaining at the end of the period.

A summarized Cash account, stating the amounts of money actually received and disbursed during the period to which it relates, without regard to whether the same are earnings or expenses exclusively appertaining to that period, or include items so appertaining to the period preceding. It starts with the cash balance at the commencement of the period which it covers, and concludes with the cash balance at the close thereof.

Summary Account. An account into which a number of detail accounts are closed for the purpose of showing a general result.

Surplus. The excess of assets over liabilities including capital stock. It is in reality undistributed profit.

Surplus Fund. A credit account formed by periodically setting aside a portion of the net profits of a corporation to provide an unspecified reserve for contingencies. In the National Banking Act, a fund created by setting aside one-tenth of the net profits until 20% of the capital has been so reserved for dividends.

Trading Account. This account shows the same facts as the trading accounts on the Profit and Loss statement, and may be shown as a separate account, or as one section of the Profit and Loss account. All accounts relating to the purchase and sale of merchandise are usually classed as trading

accounts.

Treasury Stock. Such portion of the capital stock of a corporation as has been fully paid for and legally issued and has since been acquired by the issuing corporation, either by purchase or by donation.

Trial Balance. A Trial Balance is a list of the balances or footings shown on a ledger, for the purpose of testing their accuracy. When successfully compiled, it ceases to be a trial balance and becomes a statement of ledger balances.

Two Name Paper. A note made by two persons as individuals or made by one and endorsed by another-these two persons being severally liable.

Undivided Profits. Earnings or profits which have not been divided among the partners in a firm or the stockholders in a corporation.

Voucher Check. A check which contains as part of the instrument a statement of the account covered by the check. It is used in connection with the voucher system of accounting for expenditures.

Voucher System. A method of accounting for expenditures. The vouchers payable book shows the existing liabili ties and serves in the place of a subsidiary accounts payable ledger. A controlling account is kept in the general ledger with Vouchers Payable. This account shows the total of unpaid vouchers.

Will. A last will and testament and all codicils. A solemn declaration in legal form making a disposition of property to take effect at death, but revocable during life by the person making the will.

Working Capital. All assets available for the carrying on of a business, such as cash, accounts receivable, notes receivable, and inventories. Those assets which are the subject of the company's business or may be easily converted into cash.