Flashcards
QBO Chapter 9 key terms
Cards in this deck (14)
- 1Accounting cyclea series of accounting activities that a business performs each accounting period
- 2Accounting Periodone month, one quarter, or one year
- 3Chart of accountsThe Chart of Accounts is a list of all accounts used to accumulate information about assets, liabilities, owners’ equity, revenues, and expenses. Create a Chart of Accounts when the business is established and modify the Chart of Accounts as needed over time.
- 4TransactionsDuring the accounting period, record transactions with customers, vendors, employees, and owners
- 5Trial BalanceA Trial Balance is also referred to as an unadjusted Trial Balance because it is prepared before adjustments. A Trial Balance lists each account and the account balance at the end of the accounting period. Prepare a Trial Balance to verify that the accounting system is in balance—total debits should equal total credits.
- 6AdjustmentsAt the end of the accounting period before preparing financial statements, make any adjustments necessary to bring the accounts up to date. Adjustments are entered in the Journal using debits and credits.
- 7Adjusted Trial BalancePrepare an Adjusted Trial Balance (a Trial Balance after adjustments) to verify that the accounting system still balances. If additional account detail is required, print the general ledger (the collection of all the accounts listing the transactions that affected the accounts).
- 8Financial StatementsPrepare financial statements for external users (Profit and Loss, Balance Sheet, and Statement of Cash Flows). Prepare income tax summary reports and management reports.
- 9Adjusting entriesRecord adjustments necessary to bring the accounts up to date at the end of an accounting period
- 10Prepaid itemsItems that are prepaid, such as prepaid insurance or prepaid rent.
- 11Unearned itemsItems that a customer has paid us for, but we have not provided the product or service.
- 12Accrued expensesExpenses that are incurred but not yet paid or recorded.
- 13Accrued revenuesRevenues that have been earned but not yet collected or recorded.
- 14The accrual basis of accountingattempts to match expenses with the revenue (income) they generate. The cash basis records revenues (income) when cash is received and records expenses when cash is paid. The accrual basis attempts to record revenue (income) in the accounting period when it is earned (the product or service is provided) regardless of when the cash is received. The accrual basis attempts to record expenses in the accounting period it is incurred regardless of when the cash is paid.
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- QBO Accounting Information Systems Chapter 9 key terms.
- Created by
- Stephanie Poole · Nov 2022
- Updated
- Nov 21, 2022
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