Vocab
Entries necessary at the end of each accounting period to report revenues and expenses in the proper period and assets and liabilities at appropriate amounts.
What is an Adjustment?
This item helps identify which accounts need adjusting.
What is the purpose of an Unadjusted Trial Balance?
This type of adjustment is postponed until later
What is a Deferral Adjustment?
The First Step in an adjustment
What is to Analyze in accounting?
Entries Necessary at the end of each accounting period to report revenues and expenses in the proper period as well as, assets and liabilities at proper amounts.
Adjusting Journal Entries
This occurs when recorded in the same period as the revenues to which they relate
What is the Matching Principal?
This amount at which an asset or liability is reported after deducting any contra-accounts
What is a carrying value?
(Book value, net book value)
This type of adjustment involves 1 asset and 1 revenue or 1 revenue or 1 liability and 1 expense
What is a Accrual Adjustment?
The Second Step in an adjustment
What is to Record in accounting?
What accounts involve adjustments? (Two possible answers)
Balance Sheet
An account that is an offset to, or reduction of, another account
What is a Contra-Account?
This item is to help present proper and accurate picture of the company's financial performance.
What is the purpose of an Adjustment?
An internal report, prepared before end-of-period adjustments, listing unadjusted balances of each account to check the quality of total debits and credits
What is a Unadjusted Trial Balance?
The Third Step in an adjustment
What is to Summarize?
The two main purposes for an adjusted trial balance
What is to make sure the debits match the credits and to check that the financial statements comply with GAAP?
This occurs when recorded when (or as) the seller fulfills it performance obligation to the customer
What is the Revenue Recognition Principal?
This item is placed based on debit or credit columns of an adjusted trial balance.
What is adjusted T-account balances?
This adjustment is used to record revenue or expenses when they occur prior to receiving or paying cash and adjust corresponding balance sheet accounts.
What is an Accrual Adjustment?
The Fourth Step in an adjustment
What is Prepare Trial Balance?
What happens when you drop burning MG on a counter
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Process of allocating the cost of buildings, equipment, and other similar long -lived "productive" assets over their productive lives using a systematic and rational method of allocation
What is a Depreciation?
At the end of an accounting period.
When are adjustments due?
This adjustment is used to decrease balance sheet accounts and increase corresponding Income Statement accounts.
What is a Deferral Adjustment?
The Fifth Step in an adjustment
What is Report Financial Statements?
Revenues - Expenses = Net Income
What is the formula for Net Income?