Adjustment

Entries made

- at the end of accounting period

-report revenues and expenses in that period

-report assets and liabilities at appropriate amount

Adjusted Journal Entries (AJEs)

Records the effects of each period's adjustment in a DEBIT-EQUAL-CREDITS format

Carrying Value

The amount at which an asset or liability is reported ("carried") in the financial statements.

Also known as "NET BOOK VALUE."

Depriciation

The process of allocating the cost of

buildings, vehicles, and equipment to the

accounting periods in which they are used.

Contra-Account

(linked to Depriciation)

An Account that is an offset to, or reduction of, another account.

Adjusted Trial Balance

- a list of all account and their adjusted balances

- used to check on the equality or recorded debits and credits

Permanent Accounts

(As opposed to Temporary Accounts.) 

Accounts that track financial results from

year to year by carrying their ending

balances into the next year.

Temporary Account

(As opposed to Permanent Accounts.)

Accounts that track financial results for a limited period of time by having their balances zeroed out at the end of each accounting year.

Post-Closing Trial Balance

An internal report prepared as the last step in the accounting cycle to check that debits equal credits and all temporary accounts have been closed.