Ch 5 - Adj and Worksheet VOCAB Flashcards Preview

Principles of Accounting > Ch 5 - Adj and Worksheet VOCAB > Flashcards

Flashcards in Ch 5 - Adj and Worksheet VOCAB Deck (11):
1

Define account form balance sheet.

1. Balance sheet that lists assets on the left, and owner's equity and liabilities on the right

2

Define adjusting entries (aka adjustments).

A Journal entries made to update accounts for items that were not rec recorded during the accounting period

3

Define book value.

portion of an asset's original cost that has not yet been depreciated

4

Define contra account.

account with normal balance that is opposite that of a related account

5

Define contra asset account

asset account with a credit balance, which is contrary to the normal balance of an asset account.

6

Define depreciation.

allocation of the cost of a long-term asset to operations during its expected useful life.

7

Define prepaid expenses.

expense items acquired, recorded, and paid for in advance of their use

8

Define report form balance sheet.

balance sheet that lists the asset accounts first, followed by liabilities and owner's equity.

9

Define salvage value

estimate of the amount that could be received by selling or disposing of an asset at the end of its useful life

10

Define straight-line depreciation.

allocation of an asset's cost in equal amounts to each accounting period of the asset's useful life

11

Define worksheet

form used to gather all data needed at the end of an accounting period to prepare financial statements