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14 Cards in this Set

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  • Back
Accounting concept that assumes that the economic life of a business can be divided into time periods
Accounting Period Concept
The conta asset account credited when recording the depreciation of a fixed asset
Accumulated Depreciation
The basis of accounting in which revenues are reported in the income statement in the period in which they are earned
Accrual Basis of Accounting
Accounting concept that supports reporting revenues when the services are provided to customers
Revenue Recognition Concept
Accounting concept that supports reporting revenues and the related expenses in the same period
Matching Concept
Portion of the cost of the fixed asset that is recorder as an expense each year of its useful life
Depreciation Expense
Revenues that have been earned but not recorded in the accounts
Accrued Revenue
Journal entries that bring the accounts up to date at the end of the accounting period
Adjusting Entries
Items that have been initially recorded as assets but are expected to become expenses over time or through the normal operations of the business
Prepaid of Deferred Expenses
The difference between the cost of a fixed asset and its accumulated depreciation
Book Value
Expenses that have been incurred but not recorded in the accounts
Accrued Expenses
Items that have been initially recorded as liabilities but are expected to become revenues over time or through the normal operations of a business
Unearned of Deferred Revenue
Physical resources that are owned and used by a business and are permanent or have a long life
Fixed Assets or Plant Assets
Decrease in the ability of a fixed asset to provide useful services
Depreciation