Test1 Study Guide.2

Test1 Study Guide.2 - deferred expenses Expenses recognized...

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accrued  expenses Expenses recognized prior to the payment of cash. accrual  accounting A form of accounting in which revenues are recognized when they  are earned and expenses are recognized when they are incurred. accounting  cycle The process of recording, summarizing, and reporting accounting  information. accrued  revenue Revenue recognized prior to the receipt of cash. closing entries Transactions that reset the balances of each revenue and expense  account to zero and transfer these balances to Retained Earnings. adjusting  entry A transaction recorded in the accounting system to ensure the  correct account balances are reported for a particular fiscal period.
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Unformatted text preview: deferred expenses Expenses recognized after the payment of cash. accrued liabilities Liabilities that record the obligation to make payments for expenses that have been incurred or for assets that have been acquired but for which payment has not been made. deferred revenue Revenue recognized after cash has been received. matching principle An accounting concept which requires companies to recognize the expenses used to generate revenue in the same accounting period in which the revenues are recognized....
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