Flashcards - Adjusting Accounts and Preparing Financial Statements

Flashcards - Adjusting Accounts and Preparing Financial Statements
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expense
In common usage, an expense or expenditure is an outflow of money to another person or group to pay for an item or service, or for a category of costs
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adjusted trial balance
A trial balance is a list of all the general ledger accounts contained in the ledger of a business
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accounts receivable
Accounts receivable is a legally enforceable claim for payment held by a business for goods supplied and/or services rendered that customers/clients have ordered but not paid for
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Accrual-basis accounting
Accrual of something is, in finance, the adding together of interest or different investments over a period of time
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Accrual-basis accounting
Accrual of something is, in finance, the adding together of interest or different investments over a period of time
accounts receivable
Accounts receivable is a legally enforceable claim for payment held by a business for goods supplied and/or services rendered that customers/clients have ordered but not paid for
adjusted trial balance
A trial balance is a list of all the general ledger accounts contained in the ledger of a business
expense
In common usage, an expense or expenditure is an outflow of money to another person or group to pay for an item or service, or for a category of costs
asset
In financial accounting, an asset is an economic resource
chart of accounts
A chart of accounts is a created list of the accounts used by an organization to define each class of items for which money or the equivalent is spent or received
Account adjustments
In accounting/accountancy, adjusting entries are journal entries usually made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred
matching principle
In accrual accounting, the matching principle states that expenses should be recorded during the period in which they are incurred, regardless of when the transfer of cash occurs
dividend
A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits

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