Glossary

Accrued – to record on an organization’s books according to when a transaction occurred rather than when the related cash payment was made; e.g. John earned $1,000 in salary during December, 1997 but was not paid such amount until 1/10/98. John’s employer would consider the $1,000 as accrued in 1997 even though it was not paid until 1998. Return.

Pay-as-you-go – to record on an organization’s books according to when a the cash payment was made rather than when the transaction giving rise to such payment occurred; e.g. In the example shown in the definition of “accrued”, the $1,000 would be considered as earned in 1998 since that is the year in which it was paid. Return.

Self funded plan – A plan whose benefits are not guaranteed in some manner by an insurance company. Return.