Chap 12 Flashcards
Accrual Basis
a system of accounting by which all revenues and expenses are matched and reported on financial statements for the applicable period, regardless of when the cash related to the transaction is received or paid.
Accrued Expenses
expense items that relate to the current period but have not yet been paid and do not yet appear in the accounting records
Accrued Income
income that has been earned but not yet received and recorded
Deferred Expenses
prepaid expenses
Deferred Income
unearned income
Inventory Sheet
a form used to list the quantity and type of goods a firm has in stock
Net Income Line
the worksheet line immediately following the column totals on which net income (or net loss) is recorded in two places: the Income Statement section and the Balance Sheet section
Property, Plant, and Equipment
long-term assets that are used in the operation of a business that are subject to depreciation (except for land, which is not depreciated)
Unearned Income
income received before it is earned
Updated Accounts
the amounts entered in the Adjusted Trial Balance section of the worksheet
