Accounting-Chapter 4: Accrual Accounting and Adjusting Entries

Card Set Information

Author:
noblewhit
ID:
136760
Filename:
Accounting-Chapter 4: Accrual Accounting and Adjusting Entries
Updated:
2012-02-21 14:15:43
Tags:
Accounting Accrual Adjusting Entries
Folders:

Description:
Accounting 2110-Accrual Accounting and Adjusting Entries
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user noblewhit on FreezingBlue Flashcards. What would you like to do?


  1. Cash Basis of Accounting
    Records revenues when cash is recieved and reords expenses when cash is paid.
  2. Accrual Basis of Accounting
    Records revenues when they are earned and records expenses when they are incurred.
  3. Adjusting Journal Entries
    Entries made in the general journal to record revenues that have been earned but not recorded and expenses that have been incurred but not recorded.
  4. Closing Process
    The process of transferring all revenue, expense, and dividend account balances to the Retained Earnings account.
  5. Temporary Accounts
    Accounts that accumulate balances only for the current period.
  6. Closing entries
    Entries made in the journal and posted to the ledger that eliminate the balances in all temporary accounts and transfer those balances to the Retained Earnings account
  7. Accounting cycle
    The sequence of steps in which an accounting information system captures, processes, and reports a company's accounting transactions during a period.
  8. List the steps of the Accounting Cycle
    • 1. Journalize and post accounting transactions.
    • 2. Prepare a trial balance.
    • 3. Journalize and post adjusting entries.
    • 4. Prepare an adjusted trial balance.
    • 5. Prepare financial statements.
    • 6. Journalize and post closing entries.
    • 7. Prepare a post-closing trial balance.

What would you like to do?

Home > Flashcards > Print Preview