Chapter 3 Terms (23rd) - Chapter 3 Terms Accounting Period...

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Chapter 3 Terms Accounting Period Concept The economic life of a business can be divided into time periods. Accrual Basis A basis of accounting in which revenues are recognized in the period earned, and expenses are recognized in the period incurred in the process of generating revenues. Accrued Expenses Expenses that have been incurred but not paid. Sometimes called accrued liabilities. Accrued Revenues Revenues that have been earned but not collected. Sometimes called accrued assets. Accumulated Depreciation Account The Contra asset account used to accumulate the depreciation recognized to date on plant assets. Adjusted trial balance The trial balance which is prepared after all the adjusting entries have been posted. Used to verify the equality of the total debit balances and total credit balances before preparing the financial statements Adjusting entries Entries required at the end of an accounting period to bring the ledger up to date. Adjusting process
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This note was uploaded on 10/22/2010 for the course BUSINESS BAIU09 taught by Professor Mr.ken during the Spring '10 term at American InterContinental University Dunwoody.

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Chapter 3 Terms (23rd) - Chapter 3 Terms Accounting Period...

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