Term
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Definition
- is 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
- are 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.
- if cash will be paid
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Term
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Definition
- are previously unrecorded revenues that need to be adjusted at the end of the accounting period to reflect the amount earned and the related receivable account.
- if cash will be received
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Term
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Definition
- are 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
- transfers balances in temporary accounts to Retained Earnings and establishes zero balances in temporary accounts.
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Term
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Definition
- is an account that is an offset to, or reduction of, the primary account.
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Term
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Definition
- are 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.
- if cash was paid and previously recorded
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Term
| Deferred (Unearned) Revenues |
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Definition
- are previously recorded liabilities that need to be adjusted at the end of the accounting period to reflect the amount of revenue earned.
- if cash was received and previously recorded
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Term
| Net Book Value (Book Value, Carrying Value) |
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Definition
- [of an asset] is the difference between its acquisition cost and accumulated depreciation, its related contra-account.
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Term
| Permanent (Real) Accounts |
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Definition
- are the balance sheet accounts that carry their ending balances into the next accounting period.
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Term
| Post-Closing Trial Balance |
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Definition
- should be 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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Term
| Temporary (Nominal) Accounts |
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Definition
- are 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
- is a list of all accounts with their balances to provide a check on the equality of the debits and credits.
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