Term
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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. |
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Term
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Definition
| A list of all accounts with their balances to provide a check on the equality of the debits and credits. |
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Term
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Definition
| An account that is offset to, or reduction of, the primary account. |
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Term
| Net Book Value (Book Value, Carrying Value) |
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Definition
| Of an asset, the difference between it acquisition cost and accumulated depreciation, its related contra-account. |
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Term
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Definition
| Entries necessary at the end of the accounting period to measure all revenues and expenses of that period. |
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Term
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Definition
| Previously recorded liabilities that need to be adjusted at the end of the accounting period to reflect the amount of revenue earned. |
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Term
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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. |
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Term
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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. |
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Term
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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. |
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Term
| Permanent (Real) Accounts |
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Definition
| The balance sheets accounts that carry their ending balances into the next accounting period. |
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Term
| Temporary (Nominal) Accounts |
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Definition
| Income statement accounts that are closed to Retained Earnings at the end of the accounting period. |
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Term
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Definition
| Transfers balances in temporary accounts to Retained Earnings and establishes zero balances in temporary accounts. |
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Term
| Post-Closing Trial Balance |
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Definition
| Prepared as the last step of the accounting cycle to check that debits equal credits and all temporary accounts have been closed. |
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