Expenses and revenues that gradually accumulate throughout an accounting period

The accounting process whereby revenues are measured and recorded as earned, while expenses are recorded as incurred

Unpaid expenses that have already been incurred

Revenues that have been earned and recorded, but are not as yet collected

A trial balance prepared after adjusting entries have been prepared and posted to the ledger

To analyze account balances and update them at the end of an accounting period to reflect the correct measure of revenues and expenses

Cost minus accumulated depreciation; the net amount at which an asset is reported on the balance sheet

An accounting approach where revenue is recorded when cash is received (no matter when "earned"), and expenses are recognized when paid (no matter when "incurred")

An account that is subtracted from a related account -- contra accounts have opposite debit/credit rules

The process used to allocate the cost of a long-lived property to the accounting periods benefited

A one-year accounting period that does not correspond to a calendar year

To associate expenses with revenues, and record them in simultaneous accounting periods

Like the cash basis, except that certain large expenditures for durable assets may be recorded as assets initially

Applicable to certain businesses that have a seasonal business pattern, and an attempt is made to establish an accounting fiscal year to match

An accounting assumption that purports to divide a continuous business process into measurement intervals, such as months, quarters, and years

Goods or services purchased in advance of their consumption

The point at which revenue is recognized in the accounting records; ordinarily the point of sale

Revenue that has been collected in advance of providing goods and services to "earn it;" reported as a liability until earned