Chapter-12-Accruals-Deferrals&Worksheet

Expenses

100

Expense items that relate to the current period but have not yet been paid and do not yet appear in the accounting records  (salaries expense, payroll tax expense, etc.)

Accrued Expenses

Inventory

200

A form used to list the volume and type of goods a firm has in stock

Inventory Sheet

Assets

300

Long-term assets that are used in the operation of a business and that are subject to depreciation (except for land, which is not depreciated)

Property, plant, and equipment

Income

400

Income that has been earned but not yet received and recorded (example: prepaid rent or prepaid insurance)

Accrued Income

Accounting System

500

A system of accounting by which all revenues and expenses are matched and reported on financial statements for the applicable period, regardless of when the cash related to the transactions is received or paid

Accrual basis