Vocab Flashcards
Transactions that are set up for automated entry in computerized accounting systems
Recurring Entries
Physical assets that will be used for a number of years in the operation of a business
Plant Assets
Trial balance prepared before adjusting entries are posted
Unadjusted Trial Balance
Tax rate associated with a tax bracket
Marginal Tax Rate
Cash and other assets expected to be exchanged for cash or consumed within a year
Current Asssets
Each tax rate and taxable income amount on one line of a tax table
Tax Bracket
Interest earned but not yet received
Accrued Interest Income
Original cost of a plant asset minus accumulated depreciation
Book Value of a Plant Asset
A loss in the usefulness of a plant asset as a result of wear or obsolescence
Depreciation
Revenue earned in one fiscal period but not received until a later fiscal period
Accrued Revenue
Portion of a plant asset’s cost that is transferred to an expense account in each fiscal period during that asset’s useful life
Depreciation Expense
Trial balance prepared after adjusted entries are posted
Adjusted Trial Balance
Actual count of merchandise at the end of a fiscal period
Ending Inventory
Recording an equal amount of depreciation expense for a plant asset in each year of its useful life
Straight-Line Method of Depreciation
Period of time over which an asset contributes to the earnings of a business
Useful Life
Total amount of depreciation expense that has been recorded since the purchase of a plant asset
Accumulated Depreciation
Amount of inventory on hand at the beginning of a fiscal period
Beginning Inventory
The amount that will be received for an asset at the time of its disposal
Salvage Value
