Adjusting Entries Flashcards
Already incurred, not yet paid
Accruals
An expense already incurred but not yet paid.
Accrued Expense
An income already earned by the business but not yet collected.
Accrued Income
An expense already paid but not yet incurred.
Prepaid Expense
An income already collected by the business but not yet earned.
Pre-collected Income
The allocation of the cost to its estimated useful life.
Depreciation
Straight-line method for depreciation accounting.
Depreciation Expense = (Cost-Salvage Value)/Estimated Useful Life
These are the anticipated loss recognized for the estimated uncollectible accounts in the current period.
Doubtful Accounts/Bad Debts/Uncollectible Accounts
Entries prepared at the end of the accounting period to bring records or balances of accounts updated.
Adjusting Entries
Already incurred, not yet paid
Accruals
An expense already incurred but not yet paid.
Accrued Expense
An income already earned by the business but not yet collected.
Accrued Income
An expense already paid but not yet incurred.
Prepaid Expense
An income already collected by the business but not yet earned.
Pre-collected Income
The allocation of the cost to its estimated useful life.
Depreciation
