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Definition
| A record in which increases and decreases in a financial statement element are recorded. |
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Term
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Definition
| The process that begins with the analysis of transactions and ends with the preparation of the accounting records for the next accounting period. |
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Definition
| Liabilities for amounts incurred from purchases of products or services in the normal operations of a business. |
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Term
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Definition
| Receivables created by selling merchandise or services on credit. |
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Term
| Accrual basis of accounting |
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Definition
| A system of accounting in which revenue is recorded as it is earned and expenses are recorded when they generate revenue. |
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Definition
| Revenues or expenses that have not been recorded. |
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Term
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Definition
| Expenses that have been incurred at the end of an accounting period but have not been recorded in the accounts; sometimes called accrued liabilities. |
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Term
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Definition
| Revenues that have been earned at the end of an accounting period but have not been recorded in the accounts; sometimes called accrued assets. |
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Term
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Definition
| An offsetting or contra asset account used to record depreciation on a fixed asset. |
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Term
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Definition
| A process required by the accrual basis of accounting in which the accounts are updated prior to preparing financial statements. |
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Term
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Definition
| A system of accounting in which only transactions involving increases or decreases of the entity’s cash are recorded. |
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Term
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Definition
| A balance sheet prepared with various sections, subsections, and captions that aid in its interpretation and analysis. |
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Definition
| Cash and other assets that are expected to be converted to cash or sold or used up through the normal operations of the business within 1 year or less. |
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Term
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Definition
| Liabilities that will be due within a short time (usually 1 year or less) and that are to be paid out of current assets. |
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Term
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Definition
| Delayed recordings of expenses or revenues. |
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Term
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Definition
| Items that are initially recorded as assets but are expected to become expenses over time or through the normal operations of the business; sometimes called prepaid expenses. |
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Term
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Definition
| Items that are initially recorded as liabilities but are expected to become revenues over time or through the normal operations of the business; sometimes called unearned revenues. |
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Term
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Definition
| The systematic periodic transfer of the cost of a fixed asset to an expense account during its expected useful life. |
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Term
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Definition
| Long-lived or relatively permanent tangible assets that are used in the normal business operations; sometimes called plant assets. |
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Term
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Definition
| Long-lived assets that are useful in the operations of a business, are not held for sale, and are without physical qualities. |
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Term
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Definition
| The rights of creditors that represent a legal obligation to repay an amount borrowed according to terms of the borrowing agreement. |
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Term
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Definition
| Liabilities that will not be due for a long time (usually more than 1 year). |
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Term
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Definition
| Written claim against debtors who promise to pay the amount of the note plus interest at an agreed-upon rate. |
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Term
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Definition
| Assets resulting from the prepayment of future expenses such as insurance or rent that are expected to become expenses over time or through the normal operations of the business; often called deferred expenses. |
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Term
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Definition
| The stockholders’ rights to the assets of a business. |
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Term
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Definition
| Items that are initially recorded as liabilities but are expected to become revenues over time or through the normal operation of the business; often called deferred revenues. |
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