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.
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	Prepare an adjusted trial balance to verify that the accounting system still balances.
Financial Statements	Prepare financial statements for external users.
Prepaid Items	Items that are to be prepaid, such as prepaid insurance or prepaid rent.
Unearned Items	Items that a customer has paid 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 Regan Deckinger about 1 year ago