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accounting

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  • Fiscal Year

    an accounting year of any 12 consecutive months that may or may no coincide

  • Revenue Recognition Principle

    Tells accountants when to record revenue and requires companys to follow a 5 step process

  • Worksheet

    Is an internal document that helps summarize data for the preparation of the financial statement

  • Time period concept

    Accountants report income and expenses for a specific period of time, like a month or a year.

  • Matching principle

    Guides accounting for expenses

  • Unadjusted trial balance

    lists the revenue and expenses but are incomplete

  • Depreciation

    assets cost over its useful life

  • residual value

    the expected value of depreciation asset at the end of its useful life.

  • Accumulated depreciation

    sum of all depreciation expense recorded for the depreciable asset to date

  • book value

    list of all accounts with their adjusted balance

  • adjusted trial balance

    is a list of all the accounts with their adjusted balances

  • deferred expense

    paid first used later

    examples prepaid rent, prepaid insurance, prepaid supplies

  • deferred revenue

    customer pays first for future revenue

  • Accured expenses

    business owes money but hasn't paid yet

  • accured revenue

    earned money but hasn't been paid yet