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Definition
| Accounting where companies record events where transactions change financial statement but cash was not exchanged |
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Definition
| A not yet paid expense (Incurred expense) |
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Definition
| Revenues earned but cash not yer received |
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Definition
| List of accounts after adjustments were made |
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Definition
| Entries made at the end of a peiod to ensure revenue & expense recognition principles are followed |
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Term
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Definition
| Difference between cost of depreciable asset and its related accumulated depreciation |
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Definition
| Basis where company only records revenue only when it receives or pays cash |
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Term
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Definition
| Transfer balances from temporary accounts to permanent accounts |
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Term
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Definition
| An account that's offset against an asset account on the balance sheet |
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Term
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Definition
| Allocating the cost of an asset to expense over its useful life |
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Term
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Definition
| Planned timing of revenues, expenses, gains and losses to smooth out bumps in net income |
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Term
| Expense Recognition (matching principle) |
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Definition
| Companies match efforts (expenses) with results (revenues) |
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Term
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Definition
| Accounting period that's 1 year long |
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Term
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Definition
| Temporary account used in closing revenue and expense accounts |
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Term
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Definition
| Assumption that business life can be divided into artificial periods |
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Term
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Definition
| Balance sheet accounts whose balances are carried over to next accounting period |
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Term
| Post-Closing Trial Balance |
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Definition
| List of permanent accounts and their balances after a company has journalized and posted closing entries |
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Term
| Revenue Recognition Principle |
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Definition
| Companies recognize revenue in the accounting period it was earned in |
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Term
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Definition
| Rev, Exp, and Div accts whose balances transfer to retained earnings |
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Term
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Definition
| Cash Received before company earns it (liability) |
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Term
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Definition
| Multiple column form companies use in adjustment process |
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