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Definition
| accounting basis in which companies record revenue when they recieve cash and an expense when they pay cash |
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Definition
| the length of service of a long-lived asset |
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Definition
| expenses paid in cash that benefit more than one accounting period and that are recorded as assets |
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Term
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Definition
| the allocation of the cost of an asset to expense over its useful life in a rational and systematic manner |
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Term
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Definition
| accounting basis in which companies record transactions that change a company's financial statements in the periods in which the events occur |
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Definition
| expenses incurred but not yet paid in cash or recorded |
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Term
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Definition
| cash received and recorded as liabiliies before revenue is earned |
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Term
| Revenue Recognition Principle |
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Definition
| the principle that companies recognize revenue in the accounting period in which it is earned |
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Term
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Definition
| adjusting entries for either accrued revenues or accrued expenses |
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Term
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Definition
| adjusting entries for either prepaid expenses or unearned revenues |
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Definition
| monthly or quarterly accounting time periods |
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Definition
| the principle that companies match efforts(expenses) with accomplishments (revenues) |
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Term
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Definition
| an accounting period that runs January 1 to December 31 |
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Term
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Definition
| a list of accounts and their balances after the company has made all adjustments |
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Term
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Definition
| Revenues earned but not yet received in cash or recorded |
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Term
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Definition
| entries made at the end of an accounting period to ensure that companies follow the revenue recognition and matching principles |
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Term
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Definition
| the difference between the cost of a depreciable asset and its related accumulated depreciation |
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Term
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Definition
| an accounting period that is one year in length |
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Term
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Definition
| an account offset against an asset account on the balance sheet |
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