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
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
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 an 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
The difference between its acquisition cost and accumulated depreciation, its related contra-account |
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Term
Unearned Revenues (deferred revenues) |
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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 account |
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Term
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Definition
Previously aquired assets that need to be adjusted at the end of the accounting period to reflect the amount of the 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 sheet 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
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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