accountingtest2-2notes

accountingtest2-2notes - Accounting Period: length of t ime...

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Accounting Period: length of time covered by financial statements; also called reporting periods Accrual basis accounting: Accounting system that recognizes revenues when earned and expenses when incurred; the basis for GAAP. Accrued Expenses: Costs incurred in a period that are both unpaid and unrecorded; adjusting entries for recording accrued expenses involve increasing expenses and increasing liabilities. Accrued Revenue: Revenues earned in a period that are both unrecorded and not yet received in cash (or other assets); adjusting entries for recording accrued revenues involve increasing assets and increasing revenues. Adjusted trial balance: list of accounts and balances prepared after period- end adjustments are recorded and posted. Adjusting entry: Journal entry at the end of an accounting period to bring an asset or liability account to its proper amount and update the related expense or revenue account.
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This note was uploaded on 06/07/2011 for the course ACC 201 taught by Professor Tyler during the Spring '09 term at Guilford Tech.

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accountingtest2-2notes - Accounting Period: length of t ime...

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