Chapter 9 keywords

Question	Answer
chart of accounts	list of all counts used to accumulate information about asses, liabilities, owners' equity, revenues, and expenses
transactions	during the accounting period, record transactions with customers, vendors, Employees and owners
trial balance	also referred to as an unadjusted trial balance because it is prepared before adjustments.
adjustments	at the end of the accounting period before preparing financial statements, make any adjustments necessary to bring the accounts up to date
adjusted trial balance	to verify the accounting system still balances
financial statements	prepare financial statements for external uses; income tax summary reports and management reports
accounting period	can be one month, one quarter or one year
adjusting entries	enter adjustments by making entries in the journal; dated the last day of the accounting period
prepaid items	items that are prepaid
unearned items	items that a customer has paid us for, but we have not provided the product or service
accrued expenses	expenses that are incurred but not yet paid or recorded
accrued revenues	revenues that have been earned but not yet collected or recorded
accrual basis of accounting	attempts to match expenses with the revenue they generate
cash basis accounting	records revenues when cash is received and records expenses when cash is paid
depreciation	allocations of a fixed asset's cost over its useful life
accrued expenses	expenses that are incurred but not yet paid or recorded

Resource summary

	Created by Stephanie Spearman about 2 years ago