Accounting Terminology Guide

S

S
S Corporation

A CORPORATION which, under the INTERNAL REVENUE CODE, is generally not subject to federal income taxes. Instead, taxable income of the corporation is passed through to its stockholders in a manner similar to that of a PARTNERSHIP.

Safe Harbor Rule

Concept in statutes and regulations whereby a person who meets listed requirements will be preserved from adverse legal action. Frequently, safe harbors are used where a legal requirement is somewhat ambiguous and carries a risk of punishment for an unintended violation.

Sale

Any exchange of goods or services for money.

Sale-Leaseback Transaction

Sale of property by a seller who simultaneously leases the property back from the purchaser.

Sales Discount

A discount that is given to a buyer for early payment for a sale made on CREDIT.

Sales Tax

A TAX that is levied by a state or city government on the retail sale of goods and services.

Salvage Value

Selling price assigned to retired FIXED ASSETS or merchandise unsalable through usual channels.

SAS

Statements issued by the Accounting Standards Board of the AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS (AICPA).

Savings Bond

U.S. government BOND issued in face value denominations ranging from $50 to $10,000.

Seasonality

Variations in business or economic activity that recur with regularity as the result of changes in climate, holidays, and vacations.

SEC

Agency authorized by the United States Congress to regulate the financial reporting practices of most public corporations.

SEC Filings

Financial and informational DISCLOSURES required by the SEC in order to comply with certain sections of the Securities Act of 1933 and the Securities and Exchange Act of 1934. Some of the more common filings that publicly owned companies must submit are the FORM 10-K, FORM 10-Q and FORM 8-K.

SEC Registration Statement

DISCLOSURE document that must be filed with the SEC in connection with a public offering of SECURITIES, unless the offering is exempt.

Secondary Market

EXCHANGES and OVER-THE-COUNTER markets where securities are bought and sold subsequent to original issuance, which took place in the primary MARKET.

Secured Bond

A BOND that gives the bondholders a pledge of certain company assets as a guarantee of repayment.

Secured Debt

DEBT guaranteed by the pledge of assets or other COLLATERAL.

Securities and Commodities Exchanges

Organized, national EXCHANGES where securities, options, and futures contracts are traded by members for their own accounts and for the accounts of customers.

Securities and Exchange Commission (SEC)

Agency authorized by the United States Congress to regulate the financial reporting practices of most public corporations.