Created by Scott Gottstein
almost 6 years ago
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Accounting method that records revenues only when cash is received and expenses only when cash is paid
Accounting method that records revenues when earned and expenses when incurred
Assumes that a business's activities can be sliced into small time segments and that financial statements can be prepared for a specific period, such as a month, quarter or year
An accounting year of any 12 consecutive months that may or many not coincide with the calendar year
Requires companies to record revenue when (or as) the entity satisfies each performance obligation
Guides accounting for expenses, ensures that all expenses are recorded when they are incurred during the period and matches those expenses against the revenues of the period
An entry made at the end of the accounting period that is used to record revenues to the period in which they are earned and expenses to the periond in which they occur
Cash payment occurs before an expense is incurred or the cash receipt occurs before the revenue is earned
Records an expense before the cash is paid or records revenue before the cash is received
An asset created when a business makes advance payments of future expenses
A liabilitiy created when a business collects cash from customers in advance of completing a service or delivering a product
An expense that the business has incurred but has not yet paid
A revenue that has been earned but for which the cash has not yet been collected
Long lived, tangible assets, such as land, buildings and equipment used in the operations of a business
The process by which businesses spread the allocation of a plant assets cost over it's useful life
The expected value of a depreciable asset at the end of its useful life
A depreciation method that allocates an equal amount of depreciation each year
(Cost - Residual Value) / Useful Life
The sum of all depreciation expense recorded to date for a depreciable asset
An account that is paired with and is listed immediately after its related account, in the chart of accounts and associated financial statement, and whose normal balance is the opposite of the normal balance of the related account.
A depreciable assets cost minus accumulated depreciation
A list of all accounts with the adjusted balances
An internal document that helps summarize data for preparation of financial statements.