time period covered by financial statements, such as monthly, quarterly, semiannual, or annual statements
recognizing revenue when earned and recording expenses when incurred regardless of the cash received or paid
contra asset account used to offset or reduce an asset account to its book value, or carrying value
list of general ledger accounts with proper balances after adjusting entries are posted in the ledger
entries made at the end of the accounting period to adjust and bring the asset, liability, revenue, and expense accounts to their proper balances using accrual basis accounting
recognizing and recording revenue or expenses in the period when cash is received or paid
account that is associated with another account (the main account) that has a normal balance opposite the normal balance in the main account
process of allocating the cost of property, plant, and equipment over their expected useful lives as an expense
tangible asset used in the normal course of business, such as property, plant, and equipment, to generate revenue
principle used in the adjusting process to report or match expenses in the same accounting period as the revenue earned
principle on which the adjusting process is based. It aims to recognize or record revenue in the accounting period when it is earned regardless of when cash is actually received.
division of a business's activities into specific time periods such as a month, quarter, or year
revenue that is a liability. It consists of payment (cash) received before the goods or services are provided.