Chapter 3 Vocab

Chapter 3 Vocab - Chapter 3 Vocab 1) Accrual Basis...

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Chapter 3 Vocab 1) Accrual Basis Accounting: Accounting basis in which companies record transactions that change a company’s financial statements in the periods in which the events occur. 2) Accruals: Adjusting entries for either accrued revenues or accrued expenses. 3) Accrued Expenses: Expenses incurred but not yet paid in cash or recorded. 4) Accrued Revenues: Revenues earned but not yet received in cash or recorded. 5) Adjusted Trial Balance: A list of accounts and their balances after the company has made all adjustments. 6) Adjusting Entries: Entries made at the end of an accounting period to ensure that companies follow the revenue and expense recognition principles. 7) Book Value: The difference between the cost of a depreciable asset and its related accumulated depreciation. 8) Calendar Year: An accounting period that extends from January 1 to December 31. 9) Cash Basis Accounting: Accounting basis in which companies record revenue when they receive cash and an expense when they pay cash. 10) Contra Asset Account:
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This note was uploaded on 11/14/2011 for the course ACCT 272 taught by Professor Mensah during the Fall '08 term at Rutgers.

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