ACCOUNTING - 4

These transactions have to be recorded first in order to bring all the accounts up to date at the end of the accounting period.

recognizes revenues and expenses only when they are received and paid

are expenses incurred in one period but remain unrecorded and unpaid as of the end of the period.

are revenues earned in one period but remain unrecorded and not received as of the end of the period.

are expenses paid by the business in advance; or these are expenses already paid in cash by the business but the expenses are not yet incurred or only a portion of the amount paid was used up as expense.

 is the systematic allocation of the cost of the fixed asset over its useful life. 

An accounting period can be monthly, quarterly, semi-annually or annually.