Chapter 3 - Accounting Adjustments Flashcards
1
Q
what are the characteristics of adjustment entry?
A
Each entry involves balance sheet account
Never involves cash
2
Q
what is deferrals?
A
Deferrals - have been already recorded in other accounts
3
Q
what is depreciate asset?
A
Depreciate asset - property and equipment owned by a business that last more than one year and are used to generate revenue
4
Q
what is estimated salvage value?
A
Estimated salvage value - estimated market value of a depreciable asset at the end of its useful life
5
Q
what is estimated useful life?
A
Estimated useful life - length of time that a depreciable asset will be see to help generate revenue
6
Q
what is unearned revenue?
A
Unearned revenue - the offset for ash received for services before they are rendered
