Chapter3keyterms - Chapter 3 Key Terms AC114 Accounting I...

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Chapter 3 Key Terms – AC114 Accounting I accounting period concept The accounting concept that assumes that the economic life of the business can be divided into time periods. accrual basis of accounting Under this basis of accounting, revenues and expenses are reported in the income statement in the period in which they are earned or incurred. accrued expenses Expenses that have been incurred but not recorded in the accounts. accrued revenues Revenues that have been earned but not recorded in the accounts. accumulated depreciation The contra asset account credited when recording the depreciation of a fixed asset. adjusted trial balance The trial balance prepared after all the adjusting entries have been posted. adjusting entries The journal entries that bring the accounts up to date at the end of the accounting period. adjusting process An analysis and updating of the accounts when financial statements are prepared. book value of
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Chapter3keyterms - Chapter 3 Key Terms AC114 Accounting I...

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