Adjusting Entries: Accrued Expenses definitions Flashcards
Adjusting Entries: Accrued Expenses definitions
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Accrued Expenses
Liabilities for costs incurred and benefits received in a period that remain unpaid at the period's end. Liability
Obligation to pay for benefits already received, recorded on the balance sheet until settled. Matching Principle
Accounting rule requiring expenses to be recognized in the same period as the revenues they help generate. Period Ending Date
Specific date marking the close of an accounting period, triggering the need for adjusting entries. Wage Expense
Cost recognized for employee services rendered during a period, regardless of payment timing. Accrued Wage Expense
Liability account representing wages earned by employees but not yet paid at the end of a period. Debit
Accounting entry increasing assets or expenses, or decreasing liabilities or equity. Credit
Accounting entry increasing liabilities or equity, or decreasing assets or expenses. Adjusting Entry
Journal entry made at period end to update accounts for revenues earned or expenses incurred but not yet recorded. Deferral
Accounting adjustment delaying recognition of revenue or expense to a future period. Accrual
Accounting method recognizing revenues and expenses when earned or incurred, not when cash is exchanged. Prepaid Expense
Asset account for payments made in advance for goods or services to be received in future periods. Cash
Asset representing currency or funds available for immediate use in transactions. Expense
Outflow of resources or incurrence of obligations resulting from business operations within a period. Revenue
Income earned from providing goods or services during a specific accounting period.
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