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Definition
| Accounting basis in which companies record, in the periods in which the events occur, transactions that change a company's financial statements, rather than in the periods in which the company receives or pays cash |
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Definition
| Expenses incurred but not yet paid or recorded at the statement date |
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Definition
| Revenues earned but not yet recorded at the statement date |
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Definition
| A list of accounts and their balances after all adjustments have been made |
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Definition
| Entries made at the end of an accounting period to ensure that the revenue recognition and matching principles are followed |
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Definition
| The difference between the cost of any depreciable asset and its related accumulated depreciation |
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Definition
| Accounting basis in which a company records revenue only when it receives cash, and an expense only when it pays out cash, NOT GAAP |
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Definition
| Entries at the end of an accounting period to transfer the balances of temporary accounts to a permanent stockholders' equity account, Retained Earnings |
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Term
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Definition
| The account is offset against an asset account (Office Equipment) on the balance sheet |
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Term
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Definition
| The process of allocating the cost of an asset to expense over its useful life |
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Term
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Definition
| The planned timing of revenues, expenses, gains, and losses to smooth out bumps in net income |
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Term
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Definition
| An accounting time period that is one year long |
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Term
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Definition
| A temporary account used in closing revenue and expense accounts |
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Term
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Definition
| It dictates that efforts (expenses) be matched with accomplishments (revenues) |
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Term
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Definition
| Balance sheet accounts whose balances are carried forward to the next accounting period |
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Term
| Post-Closing Trial Balance |
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Definition
| A list of permanent accounts and their balances after a company has journalized and posted closing entries |
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Term
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Definition
| Expenses paid in cash and recorded as assets before they are used or consumed |
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Term
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Definition
| Expenses paid in cash and recorded as assets before they are used or consumed |
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Term
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Definition
| Provides full and transparent information that will not confuse or mislead users of the financial statements |
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Term
| Revenue Recognition Principle |
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Definition
| Companies recognize revenue in the accounting period in which it is earned |
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Term
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Definition
| The beginning of the next accounting period; this entry is the exact opposite of the adjusting entry made in the previous period |
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Term
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Definition
| Revenue, expense, and dividend accounts whose balances a company transfers to Retained Earnings at the end of an accounting period |
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Term
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Definition
| An assumption that the economic life of a business can be divided into artificial time periods |
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Definition
| Companies record cash received before revenue is earned by increasing(crediting) a liability account |
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Term
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Definition
| The length of service of a productive asset |
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Term
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Definition
| Multiple-column form that may be used in the adjustment process and in preparing financial statements |
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