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