accrued revenuesRevenues that have been earned and recorded, but are not as yet collected
adjusted trial balanceA trial balance prepared after adjusting entries have been prepared and posted to the ledger
adjusting processTo analyze account balances and update them at the end of an accounting period to reflect the correct measure of revenues and expenses
book valueCost minus accumulated depreciation; the net amount at which an asset is reported on the balance sheet
cash basisAn accounting approach where revenue is recorded when cash is received (no matter when "earned"), and expenses are recognized when paid (no matter when "incurred")
contra assetAn account that is subtracted from a related account -- contra accounts have opposite debit/credit rules
depreciationThe process used to allocate the cost of a long-lived property to the accounting periods benefited
fiscal yearA one-year accounting period that does not correspond to a calendar year
matching principleTo associate expenses with revenues, and record them in simultaneous accounting periods
modified cash basisLike the cash basis, except that certain large expenditures for durable assets may be recorded as assets initially
natural business yearApplicable to certain businesses that have a seasonal business pattern, and an attempt is made to establish an accounting fiscal year to match
periodicity assumptionAn accounting assumption that purports to divide a continuous business process into measurement intervals, such as months, quarters, and years
prepaid expensesGoods or services purchased in advance of their consumption
revenue recognitionThe point at which revenue is recognized in the accounting records; ordinarily the point of sale
unearned revenueRevenue that has been collected in advance of providing goods and services to "earn it;" reported as a liability until earned
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