Acctg 1 - Q3 Midterm

A time periods normally one month, one quarter, or one year into which an entity's life is arbitrarily divided for financial reporting purposes.

An accounting period of one year, which may or may not coincide with the calendar year.

Recognizes revenue when sales are made or services were performed, regardless of when cash is received. Recognizes expenses when incurred whether or not cash has been paid out.

A contra-asset account that shows the total of all depreciation on the asset up to the balance sheet date.

Entries made at the end of the accounting period to bring the accounts to their proper balances before financial statements are prepared.

Cost of depreciable assets less its accumulated depreciation.

Recognizes revenues when cash is received and recognizes expenses when cash is paid out.

An account that shows a deduction as a deduction from the asset to which it relates in the balance sheet, used to give interested parties more complete financial information.

Assets received from customers before services are performed for them. Since the revenue has not been earned, it is a liability.

An amount by which an asset can probably be sold at the end of its estimated useful life.