ACC Chapters 3 and 4 Vocabulary

ACC Chapters 3 and 4 Vocabulary - Chapter 3 1) Accrued...

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Chapter 3 1) Accrued Expenses- Expenses that have been incurred but not recorded in the accounts. 2) Accrued Revenues- Revenues that have been earned but not recorded in the accounts. 3) Depreciation Expense- The portion of the cost of a fixed asset that is recorded as an expense each year of its useful life. 4) Prepaid Expenses- Such as supplies that will be used in the business in the future. 5) Matching Concept- A concept of accounting in which expenses are matched with the revenue generated during a period by those expenses. 6) Depreciation- The systematic periodic transfer of the cost of a fixed asset to an expense account during its expected useful life. 7) Fixed Assets- Long-term or relatively permanent tangible assets such as equipment, machinery, and building that are used in the normal business operations and that depreciate over time. 8) Unearned Revenue- The liability created by receiving revenue in advance. 9) Contra Account (or Contra Asset Account) - An account offset against another account. 10)
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ACC Chapters 3 and 4 Vocabulary - Chapter 3 1) Accrued...

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