Flashcards in Ch 5 - Adj and Worksheet VOCAB Deck (11):
Define account form balance sheet.
1. Balance sheet that lists assets on the left, and owner's equity and liabilities on the right
Define adjusting entries (aka adjustments).
A Journal entries made to update accounts for items that were not rec recorded during the accounting period
Define book value.
portion of an asset's original cost that has not yet been depreciated
Define contra account.
account with normal balance that is opposite that of a related account
Define contra asset account
asset account with a credit balance, which is contrary to the normal balance of an asset account.
allocation of the cost of a long-term asset to operations during its expected useful life.
Define prepaid expenses.
expense items acquired, recorded, and paid for in advance of their use
Define report form balance sheet.
balance sheet that lists the asset accounts first, followed by liabilities and owner's equity.
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
Define straight-line depreciation.
allocation of an asset's cost in equal amounts to each accounting period of the asset's useful life