Chapter 4 Glossary Accounting Cycle The process used by entities to analyze and record transactions, adjust the records at the end of the period, prepare financial statements, and prepare the records for the next cycle. Accrued Expenses Previously unrecorded expenses that need to be adjusted at the end of the accounting period to reflect the amount incurred and its related payable account. Accrued Revenues Previously unrecorded revenues that need to be adjusted at the end of the accounting period to reflect the amount earned and its related receivable account. Adjusting Entries Entries necessary at the end of the accounting period to measure all revenues and expenses of that period. Closing Entries Made at the end of the accounting period to transfer balances in temporary accounts to Retained Earnings and to establish a zero balance in each of the temporary accounts. Contra-Account
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This note was uploaded on 04/02/2008 for the course ACCT 284 taught by Professor Clem during the Spring '08 term at Iowa State.