Shared Flashcard Set

Details

GB 201 Ch4
Vocab
13
Accounting
Undergraduate 2
12/11/2008

Additional Accounting Flashcards

 


 

Cards

Term
Accounting Cycle
Definition
The process followed by entities to analyze and record transactions, adjust the records at the end of the period, prepare financial statements, and prepare the records for the next cycle.
Term
Trial Balance
Definition
A list of all accounts with their balances to provide a check on the equality of the debits and credits.
Term
Contra-Account
Definition
An account that is offset to, or reduction of, the primary account.
Term
Net Book Value (Book Value, Carrying Value)
Definition
Of an asset, the difference between it acquisition cost and accumulated depreciation, its related contra-account.
Term
Adjusting Entries
Definition
Entries necessary at the end of the accounting period to measure all revenues and expenses of that period.
Term
Deferred Revenues
Definition
Previously recorded liabilities that need to be adjusted at the end of the accounting period to reflect the amount of revenue earned.
Term
Accrued Revenues
Definition
Previously unrecorded revenues that need to be adjusted at the end of the accounting period to reflect the amount earned and the related receivable amount.
Term
Deferred Expenses
Definition
Previously acquired assets that need to be adjusted at the end of the accounting period to reflect the amount of expense incurred in using the asset to generate revenue.
Term
Accrued Expenses
Definition
Previously unrecorded expenses that need to be adjusted at the end of the accounting period to reflect the amount incurred and the related payable account.
Term
Permanent (Real) Accounts
Definition
The balance sheets accounts that carry their ending balances into the next accounting period.
Term
Temporary (Nominal) Accounts
Definition
Income statement accounts that are closed to Retained Earnings at the end of the accounting period.
Term
Closing Entry
Definition
Transfers balances in temporary accounts to Retained Earnings and establishes zero balances in temporary accounts.
Term
Post-Closing Trial Balance
Definition
Prepared as the last step of the accounting cycle to check that debits equal credits and all temporary accounts have been closed.
Supporting users have an ad free experience!