Access over 20 million homework & study documents

Accounting Cycle

Content type
User Generated
Type
Study Guide
Rating
Showing Page:
1/11
Accounting Cycle
All of the steps in the accounting process including analyzing and recording transactions, posting entries, adjusting
and closing the accounts, and preparing financial statements; the accounting system.
Accounts Receivable
Short-term monetary assets that arise from sales on credit to customers at either the wholesale or the retail level.
Accrual Accounting
The reporting of revenues from sales in the period in which they are sold, regardless of when the cash is received, and
the reporting of expenses in the period of purchase, regardless of when the payment is made.
Accrued Expense
An expense that has been incurred but is not recognized in the accounts, necessitating an adjusting entry; an
unrecorded expense.
Accrued Revenue
A revenue for which the service has been performed or the goods have been delivered that has not been recorded in
the accounts; an unrecorded revenue.
Accumulated Depreciation
A contra-asset account used to accumulate the total past depreciation on a specific long-lived asset.
Adjusted Gross Income (AGI)
Gross income minus deductions from gross income.
Adjusted Trial Balance
A trial balance prepared after all adjusting entries have been reflected in the accounts.
Adjusting Entry
An entry made to apply accrual accounting to transactions that span more than one accounting period or any
adjustment needed to make the accounts in balance.
Aging of Accounts Receivable
The process of listing each customer in accounts receivable according to the due date of the account.
Allowance for Uncollectible Accounts
A contra accounts receivable account in which appears the estimated total of the as yet unidentified accounts
receivable that will not be collected Asset, an economic resource owned by a business that is expected to benefit
future operations.

Sign up to view the full document!

lock_open Sign Up
Showing Page:
2/11
Average Cost Method (ACM)
An inventory costing method under which each item of goods sold and of inventory is assigned a cost equal to the
average cost of all goods purchased.
Balance Sheet
A financial statement that shows the financial position of a business at a particular date.
Bank Reconciliation
The process of accounting for the differences between the balance appearing on the bank statement and the balance
of cash according to the depositor's records.
Bond
A security, usually long-term, representing money borrowed by a corporation from the investing public.
Book Value
The total assets of a company less total liabilities; owners' equity; Fixed Assets less Depreciation.
Break-Even Point
The point in financial analysis at which total revenue equals total cost incurred and at which a company begins to
generate a profit.
Capital Expenditure
An expenditure for the purchase of expansion of plant assets.
Cash Basis of Accounting
A basis of accounting under which revenues and expenses are accounted for on a cash received and cash paid basis.
Cash Flow Statement
A financial statement that shows a company's sources and uses of cash during an accounting period.
Cash Payments Journal
A multi-column special-purpose journal in which disbursements of cash are recorded; also called cash disbursements
journal.
Cash Receipts Journal
A multi-column special-purpose journal in which transactions involving receipts of cash are recorded.
Closing Entries

Sign up to view the full document!

lock_open Sign Up
Showing Page:
3/11

Sign up to view the full document!

lock_open Sign Up
End of Preview - Want to read all 11 pages?
Access Now
Unformatted Attachment Preview
Accounting Cycle All of the steps in the accounting process including analyzing and recording transactions, posting entries, adjusting and closing the accounts, and preparing financial statements; the accounting system. Accounts Receivable Short-term monetary assets that arise from sales on credit to customers at either the wholesale or the retail level. Accrual Accounting The reporting of revenues from sales in the period in which they are sold, regardless of when the cash is received, and the reporting of expenses in the period of purchase, regardless of when the payment is made. Accrued Expense An expense that has been incurred but is not recognized in the accounts, necessitating an adjusting entry; an unrecorded expense. Accrued Revenue A revenue for which the service has been performed or the goods have been delivered that has not been recorded in the accounts; an unrecorded revenue. Accumulated Depreciation A contra-asset account used to accumulate the total past depreciation on a specific long-lived asset. Adjusted Gross Income (AGI) Gross income minus deductions from gross income. Adjusted Trial Balance A trial balance prepared after all adjusting entries have been reflected in the accounts. Adjusting Entry An entry made to apply accrual accounting to transactions that span more than one accounting period or any adjustment needed to make the accounts in balance. Aging of Accounts Receivable The process of listing each customer in accounts receivable according to th ...
Purchase document to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Anonymous
Just what I needed…Fantastic!

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Similar Documents