accrual accounting

Accrual Accounting

Accrued Expense

Accrued Revenue

Accumulated Deprectiation

Adjusted Trial Balance

Adjusting Entry

Book Value (of a plant asset)

Cash Basis Accounting

Contra Account

Deferred Revenue

Depreciation

Matching principle

Plant Asset

Prepaid Expenses

Revenue Principle

Time-Period Concept

Unearned Revenue

A liability created when a business collects cash from

customers in advance of doing work. Also called deferred

revenue.

Accounting that records the impact of a business event as it

occurs regardless of whether the transaction affected cash.

A liability created when a business collects cash from

customers in advance of doing work. Also called unearned

revenue.

The basis for recording revenues; tells accountants when to record

revenue and the amount of revenue to record.

The asset’s cost minus accumulated depreciation.

Guide to accounting for expenses. Identify all expenses

incurred during the period, measure the expenses, and

match them against the revenues earned during that same time

period.

The allocation of a plant asset’s cost to expense over its useful

life.

Ensures that information is reported at regular intervals.

Entry made at the end of the period to assign revenues to the period in which they are earned

and expenses to the period in which they are incurred. Help

measure the period’s income and bring the related asset and liability

accounts to correct balances for the financial statements.

Accounting that records transactions only when cash is

received or paid.

A revenue that has been earned but not yet collected in cash.

Advance payments of expenses. Examples include prepaid rent, prepaid insurance, and supplies

The cumulative sum of all depreciation expense recorded

for an asset.

An expense that the business has incurred but not yet paid.

An account that always has a companion account and whose normal balance is opposite that

of the companion account.

Long-lived tangible assets—such as land, buildings, and

equipment – used in the operation of a business.

A list of all the accounts with their adjusted balances.