Unformatted text preview: through December 31. (5) Prepaids (e) Monies collected from customers for services that have not yet been provided. (6) Unearned Revenue (f) An approach that results in the initial recording of prepaids to an asset account and unearned revenues to a liability account. (7) Balance Sheet Approach (g) The notion that continuous business process can be divided into time intervals such as years, quarters, or months for reporting purposes. (8) Adjusting Entry (h) A systematic and rational allocation scheme to spread a portion of the total cost of a productive asset to each period of use. (9) Accruals (i) Expenses and revenues that gradually accumulate with the passage of time. (10) Periodicity Assumption (j) A simplified non-GAAP based method to record revenues as received and expenses as paid....
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- Spring '11
- Accounting, Generally Accepted Accounting Principles, balance sheet approach, annual reporting period, non-GAAP based method, rational allocation scheme