QBO chapter 9 key terms

Question	Answer
Chart of Accounts	The Chart of accounts is a list of all accounts used to accumulate information about assets, liabilities, owner's equity, revenues, and expenses
Transactions	During the accounting period, record transactions with customers, vendors, employees, and owners
Trial Balance	A trial balance is also referred to as an unadjusted trial balance because it is prepared before adjustments. It lists each account and the account balance at the end of the accounting period.
Adjustments	At the end of the accounting period before preparing financial statements, make and adjustments necessary to bring the accounts up to date.
Adjusted Trial Balance	Prepare and adjusted trial balance (a trial balance after adjustments) to verify that the accounting system still balances.
Financial Statements	Prepare financial statements for external users (profit and loss, balance sheet, and statement of cash flows). Prepare income tax summary reports and management reports.
Prepaid Items	Items that are prepaid, such as prepaid insurance or prepaid rent.
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.

Resource summary

	Created by QUINLAN WILSON about 2 years ago